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India, U.S. Close In on First Tranche of Trade Pact Focused on Tariffs

Officials say the tariff package is nearly finalized under a WTO-aligned plan.

Overview

  • Commerce Secretary Rajesh Agrawal said closure on the component covering reciprocal and oil duties should come sooner rather than later.
  • Negotiators described the first tranche as highly detailed and indicated another round of talks may not be needed.
  • A second, broader package will take longer to conclude, and no formal deadline has been set for the overall agreement.
  • Two U.S. tariff hikes of 25% each remain in force, taking reciprocal duties to 50% even as discussions continue.
  • India continues to shield its agricultural and dairy sectors from expanded access requests, while separate LPG supply talks are progressing outside the trade pact.