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Informist, Thursday, Mar. 5, 2026

 

NEW DELHI – India and the US are "almost at the finish line" of signing the bilateral trade agreement, which has "limitless potential" to integrate both the economies, US Deputy Secretary of State Christopher Landau said Thursday. "...we are very much excited on focussing on India reagrding all these commercial opportunities," Landau said while speaking at Raisina Dialogue 2026. 

 

Under the first tranche of the trade deal, the US has committed to cut reciprocal tariffs on Indian goods to 18% from 25%. Since the conclusion of the deal, the White House has also scrapped the 25% penal tariff levied on India for New Delhi's strategic partnership with Russia. The US had imposed an overall 50% tariff on Indian goods in August. Under the deal, the US will scrap reciprocal tariffs on some products such as garments and textiles, and India has offered to buy $500 billion worth of goods from Washington over the next five years. 

 

Following these contours, both the countries were set to negotiate for a broader bilateral trade agreement, but the negotiations faced a setback after US Supreme Court struct down most of the tariffs imposed by US President Donald Trump, noting that the president had exceeded his powers by imposing import duties on most of the country's trade partners. After the court's decision, Trump imposed a baseline 10% tariff on all US imports for 150 days, which came into effect on Feb. 24. Trump also threatened to raise the baseline tariff to 15%, but is yet to sign an executive order to implement the higher rate.

 

The US is India's largest export destination, with New Delhi exporting goods worth $86.51 billion to Washington in 2024-25 (Apr-Mar) and importing goods worth $45.69 billion. In Apr-Jan of FY26, India had a trade surplus of $28.53 billion with the US, down from $29.88 billion a year ago.

 

According to Landau, while the US is "excited" to sign the bilateral trade deal with India, it will not commit the "same mistake" it had with China. "We are going to let you base and develop these markets and the next thing we know, you are beating us in commercial spaces," he said while speaking about opening the US economy to Chinese goods 20 years back. "We are going to make sure that whatever we do is fair to our people, because ultimately, we have to be accountable towards our people, just how India has to be accountable towards its people." 

 

India and the US can deepen their ties in security and energy sectors, Landau reiterated.  End

 

US$1 = INR 91.60

 

Reported by Priyasmita Dutta

Edited by Avishek Dutta

 

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