India seeks tariff advantage as fresh trade talks with US begin in New Delhi

India and the US on Tuesday (June 23) began a fresh round of high-level trade discussions aimed at reshaping a proposed bilateral trade agreement after changes in the US tariff regime altered key assumptions underpinning a framework negotiated earlier this year.

Fresh push for trade deal

Union Commerce and Industry Minister Piyush Goyal held talks with US Trade Representative Jamieson Greer in New Delhi as both sides intensified efforts to conclude an interim arrangement before July 24, when Washington's temporary 10 per cent tariff imposed on imports from trading partners is scheduled to lapse.

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"Warm welcome to @USTradeRep Amb Jamieson Greer, @USAmbIndia Amb Sergio Gor and their delegation to @DoC_GoI. Looking forward to productive discussions on the bilateral trade agreement between (India & US)," Commerce and Industry Minister Piyush Goyal said in a post on X.

Greer's two-day visit comes less than a week after Prime Minister Narendra Modi and US President Donald Trump met on the sidelines of the G7 Summit in France on June 17, their first interaction in over a year.

Talks gain momentum

The meeting is being viewed as an effort to inject momentum into negotiations that have assumed greater significance amid strains in bilateral ties and shifting trade policies in Washington.

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According to a PTI report quoting sources the discussions at Vanijya Bhawan are centred on revisiting the framework agreed between the two countries in February. That understanding had envisaged lower tariff treatment for Indian exports in return for greater market access for American products and expanded purchases from the US. Subsequent legal and policy developments in the US, however, forced both governments to reassess the arrangement.

Tariff framework revisited

The US Supreme Court's decision to strike down the Trump administration's sweeping tariff measures removed the basis on which the original framework had been negotiated. Soon afterwards, Washington invoked Section 122 of the Trade Act to impose a temporary 10 per cent tariff on imports from all countries for 150 days, a measure due to expire next month.

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The changes have become a key concern for New Delhi, which is seeking assurances that any eventual agreement will preserve a tariff advantage for Indian exporters over competing economies in Asia, particularly ASEAN nations, reported Reuters.

India seeks assurances

"We are trying to work out with the U.S. how they will ensure that we will get a comparative advantage, so that our exporters can benefit," Goyal said on Monday (June 23).

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The Minister added that he would be "happy" if an agreement could be concluded before the July 24 deadline, stating, "The faster, the better."

According to officials, India is also seeking clarity on whether additional tariff measures could be imposed after the agreement is finalised.

Trade backdrop and concerns

The talks are taking place against the backdrop of continuing Section 301 investigations launched by the Office of the US Trade Representative covering issues related to industrial overcapacity and forced labour concerns, both of which include India.

The US was India's second-largest trading partner in 2025-26. During the fiscal year, India's exports to the US rose 0.92 per cent to USD 87.3 billion, while imports increased 15.95 per cent to USD 52.9 billion. India's trade surplus with the US narrowed to USD 34.4 billion from USD 40.89 billion in the previous year.