Overview

• India and the US are actively negotiating a bilateral trade agreement to address tariffs, market access, and supply chain integration.
• US President Donald Trump has reiterated his plan to impose reciprocal tariffs on India starting April 2, citing India's high tariff structure.
• India has proposed an early harvest deal, offering to lower tariffs on items like bourbon whiskey, wine, and electric vehicles as a gesture of openness.
• The US is pressuring India to reduce its $45 billion trade surplus by increasing imports of American oil, gas, and military equipment.
• Both nations aim to finalize the first phase of the trade agreement by fall 2025 and double bilateral trade to $500 billion by 2030.