Overview

• India and the US are accelerating negotiations to finalize the first tranche of a bilateral trade agreement by fall 2025.
• External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio agreed on the importance of concluding the trade deal early during a phone call on April 7, 2025.
• The US imposed a 26% reciprocal tariff on Indian goods on April 2, 2025, as part of President Trump's broader trade policy measures.
• India has opted not to retaliate with counter-tariffs, instead adapting its trade policies to minimize the impact on its exporters while maintaining leverage in negotiations.
• Discussions also addressed broader strategic issues, including regional security in the Indo-Pacific and economic opportunities arising from the changing trade landscape.