Trump tariffs: US team expected in India next week as trade pact talks enter crucial phase

A delegation of US officials is expected to visit India next week for another round of discussions on the proposed bilateral trade agreement, according to government sources. The dates are currently being finalised, and both sides are working to close the first tranche of the pact, which has become a priority amid widening trade tensions.

“The team is likely to come next week. Dates are being finalised, and discussions are on,” one source told news agency PTI.

This will be the second visit by US negotiators since Washington imposed a 25% tariff — along with an additional 25% penalty — on select Indian goods entering the American market, citing India’s purchases of Russian crude oil. The first round of consultations was held on September 16, followed by Commerce and Industry Minister Piyush Goyal’s visit to the US on September 22. Goyal was accompanied by then special secretary Rajesh Agrawal, who now serves as India’s commerce secretary.

The US negotiating team will be led by Brendan Lynch, who is overseeing the discussions on behalf of Washington.

Next week’s visit is considered particularly important because Agrawal recently said that India remains optimistic about securing a framework trade deal with the US before the end of the year—one that would address the tariff burden currently affecting Indian exporters. While he acknowledged that a full-fledged Bilateral Trade Agreement (BTA) would take longer, Agrawal emphasised that the framework pact aims to tackle the immediate challenge of reciprocal tariffs.

India and the US are currently engaged in two simultaneous negotiations:

A framework deal focused on tariff-related issues.

A broader, comprehensive Bilateral Trade Agreement.

The BTA was formally initiated in February after leaders of both countries instructed their teams to negotiate the proposed agreement. The first tranche was initially targeted for completion by the fall of 2025, and six rounds of talks have taken place so far. The overarching goal of the agreement is to more than double bilateral trade to USD 500 billion by 2030, up from the present USD 191 billion.

Goyal had earlier travelled to Washington in May for discussions with US Commerce Secretary Howard Lutnick as part of the ongoing effort to accelerate negotiations.

The US continues to be India’s largest trading partner for the fourth consecutive year in 2024–25, with trade valued at USD 131.84 billion. It accounts for nearly 18% of India’s goods exports and over 10% of total merchandise trade.

However, the recent tariff escalation has begun to bite. India’s exports to the US fell for the second straight month in October, dropping 8.58% to USD 6.3 billion, while imports rose 13.89% to USD 4.46 billion, according to commerce ministry data.

Next week’s talks are expected to focus heavily on mitigating these impacts and charting the path toward a workable interim agreement.