U.S. and India Begin Crucial Trade Talks in Delhi as Tariff Deadline Looms

Delhi,  A high-level U.S. delegation has arrived in India to hold key trade negotiations, with discussions set to continue until Saturday. The talks come as the April 2 deadline set by President Donald Trump for imposing "reciprocal" tariffs on global trade partners, including India, fast approaches.

High-Stakes Bilateral Negotiations

Leading the U.S. delegation is Assistant Trade Representative for South and Central Asia, Brendan Lynch, who arrived in Delhi on Tuesday. The visit underscores Washington’s commitment to strengthening economic ties with India while addressing longstanding trade imbalances.

"This visit reflects the United States' continued commitment to advancing a productive and balanced trade relationship with India," a statement from the U.S. Embassy said.

India’s Minister of State for Commerce, Jitin Prasada, told Parliament on Tuesday that both countries are negotiating a “multi-sector bilateral trade agreement” aimed at increasing market access and reducing tariff and non-tariff barriers.

Tariffs and Trade Imbalance at the Core of Talks

The U.S. and India have been engaged in intensive trade discussions since Trump took office, with both nations seeking to recalibrate their economic partnership. In March, Indian Trade Minister Piyush Goyal made an unplanned visit to the U.S. to further trade negotiations, following Indian Prime Minister Narendra Modi’s trip to Washington in February.

Until recently, the U.S. was India’s largest trading partner, with bilateral trade reaching $190 billion. Trump and Modi had previously set an ambitious target to more than double that figure to $500 billion. However, Washington has frequently criticized India's trade policies, with Trump labeling India a "tariff king" and a "big abuser" of trade regulations.

Despite India's recent decision to lower tariffs on certain U.S. imports—including Bourbon whiskey and motorcycles—Washington remains concerned about the $45 billion trade surplus India enjoys and the country’s high average tariff rate of 12%, significantly above the U.S. average of 2%.

Potential Concessions to Avoid U.S. Tariffs

According to reports, India is considering reducing tariffs on over half of U.S. imports worth $23 billion as part of a first-phase trade deal. This move is seen as an effort to avoid the full impact of Trump's proposed reciprocal tariffs.

Trump’s trade policy seeks to impose identical tariffs on imports from countries that charge the U.S. higher duties. However, in a statement on Monday, he hinted that the U.S. might not apply a strictly equal tariff structure, stating, "We may take less than what they’re charging, because they’ve charged us so much, I don’t think they could take it."

What’s Next?

With the trade deadline looming, both countries are under pressure to reach a consensus that benefits their economies while avoiding escalations that could disrupt bilateral ties. Officials have remained tight-lipped about the details of the ongoing negotiations, but experts anticipate that any significant breakthroughs could set the stage for a more extensive trade agreement later this year.

As the negotiations unfold, global markets, businesses, and policymakers will be watching closely to see whether India and the U.S. can strike a balanced deal before Trump’s April 2 deadline.