Overview
- A senior U.S. official told Reuters on Wednesday that negotiators have effectively finalised the deal text and that signing could occur in three to four months.
- The official said the last formal hurdle is the completion of U.S. Section 301 investigations, the domestic process that allows trade probes and possible tariffs for alleged unfair practices.
- Washington has proposed forced-labour linked tariffs of up to 12.5% on many countries and President Trump announced a two-year tariff exemption for imported generics from August 1 followed by steep tariff steps of 100% for one year and 200% thereafter.
- India’s pharmaceutical sector faces immediate risk because the U.S. bought about $9.7 billion, roughly 38% of India’s $25.8 billion drug exports in 2025, which could push firms to raise prices or consider moving production.
- Indian officials have said the framework was ready and waiting for the right moment, and once U.S. probes finish—one covering about 60 countries is expected imminently—the two governments could move quickly to sign and implement tariff terms.