India, US Initiate Discussions on Key Aspects of Bilateral Trade Pact

India and US Negotiate Bilateral Trade Agreement Amid US Supreme Court Decision

In light of the US Supreme Court's decision against the sweeping tariffs imposed by President Donald Trump, India and the US are working to finalize the finer details of a bilateral trade agreement. A team of officials led by Darpan Jain, an additional secretary in the Department of Commerce, is on a three-day visit to the US to finalize the agreement.

The Indian trade delegation is set to arrive in Washington this week, marking a significant step towards finalizing the bilateral trade deal. The agreement is expected to be a win-win for both nations, with the two countries aiming to achieve a bilateral trade of USD 500 billion by 2030.

As part of the agreement, India is seeking preferential access to the US markets. The framework of the bilateral trade agreement, announced on February 2, includes the US reducing tariffs on India to 18 per cent, down from 50 per cent. The US had also removed 25 per cent tariffs on Indian goods for buying Russian oil and agreed to cut the remaining 25 per cent to 18 per cent under the pact.

However, the US Supreme Court's decision on February 20 against Trump's reciprocal tariffs, imposed under the 1977 International Emergency Economic Powers Act (IEEPA), has altered the circumstances. The Trump administration had imposed a 10 per cent tariff on all countries from February 24 for 150 days.

| Country | 2024-25 Trade Volume | 2025-26 Trade Volume | | --- | --- | --- | | US | $117.8 billion | $114.8 billion | | China | $125.7 billion | $132.8 billion |

The US was India's largest trading partner for four consecutive years until 2024-25. However, China has overtaken the US to emerge as India's largest trading partner in 2025-26. The development highlights the changing dynamics of global trade, with every country engaging with the US to understand the nature of its trade agreements with America.