Overview

• India is actively negotiating a bilateral trade agreement with the US, targeting completion of the first phase by fall 2025.
• The US recently imposed a 26% reciprocal tariff on Indian imports, leading to trade disruptions and economic uncertainty.
• External Affairs Minister S Jaishankar emphasized India's unique position as the only country to reach an understanding in principle on such a deal during Trump’s second term.
• India’s strategy focuses on leveraging bilateral engagement to address the tariff challenges and strengthen long-term trade relations with the US.
• The economic fallout of the tariffs is still unclear, with Indian officials adopting a cautious approach as they navigate the evolving trade landscape.