New Delhi, April 7, 2025: India and the United States are speeding up efforts to finalise a long-awaited bilateral trade agreement, even as new American tariffs rattle global markets.
On Monday, External Affairs Minister S. Jaishankar spoke with US Secretary of State Marco Rubio to discuss the deal’s progress. Jaishankar later confirmed that both sides stressed the importance of wrapping up the agreement quickly. “Agreed on the importance of the early conclusion of the Bilateral Trade Agreement,” he posted online, though he didn’t share further details.
This conversation follows US Assistant Trade Representative Brendan Lynch’s visit to India last week, where key terms of the trade deal were outlined. India and the US aim to sign the first tranche of the deal by fall 2025 — a timeline agreed upon during the February meeting between Prime Minister Narendra Modi and President Donald Trump.
The urgency comes amid Trump’s dramatic tariff announcements. On April 2, he slapped India with a 26% customised reciprocal tariff, part of his sweeping “Liberation Day” trade policy aimed at reducing US trade deficits and reshaping global supply chains. These measures include a 10% baseline tariff on all imports, already in effect, with reciprocal duties up to 50% set to kick in from Wednesday.
Financial markets have reacted with volatility, and Trump’s latest threat to hike tariffs on China has only worsened investor nerves. The new trade war dynamics are pushing India to secure deals that protect its exporters and industries.
During Rubio and Jaishankar’s conversation, the leaders also discussed developments in the Indo-Pacific, the Indian subcontinent, Europe, West Asia, and the Caribbean.
India’s commerce ministry said both nations are focused on boosting market access and removing tariff and non-tariff barriers. The government is also reviewing how Trump’s tariffs will affect Indian exporters and is consulting with industries to prepare a response. At the same time, officials are exploring new trade opportunities that could arise from the shifting US trade landscape.
