India and the US on Tuesday began three-day talks to move closer to the interim trade agreement based on the framework agreed to between the leaders of the both countries in February.
The Indian team is led by Additional Secretary in the Department of Commerce Darran Jain while the US leam is led by Assistant US Trade Representative for south and central Asia Brendan Lynch.
It is the second in-person meeting between the two sides to finalise the text of the interim deal after the framework was agreed. The first meeting was held in Washington in April.
The first tranche of the bilateral trade agreement with the US is in its final stages and a deal would be signed soon, officials say.
The first tranche will be a stepping stone
The first tranche will be a stepping stone for a more comprehensive Bilateral Trade Agreement (BTA) between the two countries, that was agreed to in February 2025.
Under the framework it was agreed to bring down additional tariffs on India to 18% from 50% with India agreeing to zero duty industrial products from the US and expressing intention to buy $ 500 billion worth of goods in the next five years.
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However, before the framework could be converted into a formal agreement, the US Supreme Court invalidated the country-specific reciprocal tariffs, which was the starting point of all trade deals that the US had foisted on its trade partners.
After the US Supreme Court verdict the US had imposed 10% additional tariffs on all trade partners from February 24 under Section 122 of the Trade Act.These tariffs can only be imposed for 150 days and these are expected to expire on July 24.
The US has also opened two investigations under Section 301 of the Trade Act – one on extra capacities and the other one on the use of faced labour. Post investigation US can impose additional duties on the countries that are being probed.
The possible US action under Section 301 will also be discussed at the meetings over next three days and without competitive rates versus our direct competitors we are not interested in any deal, officials say.
TOPICSIndia-US trade dealTrump TariffThis article was first uploaded on June two, twenty twenty-six, at fifty-two minutes past eight in the night. © IE Online Media Services (P) Ltd