Wed Mar 26 23:30:00 UTC 2025: ## India and US in “Intense” Trade Talks Amidst Looming Tariff Dispute

**New Delhi, March 27, 2025** – India and the United States are engaged in “very active and intense” trade negotiations, External Affairs Minister S. Jaishankar revealed on Wednesday. These talks come as the world anxiously awaits the implementation of reciprocal tariffs by US President Donald Trump on April 2nd.

While declining to predict the outcome of the negotiations, Mr. Jaishankar highlighted the strong business case for a bilateral trade agreement (BTA) between the two nations. Following a meeting between Prime Minister Narendra Modi and President Trump last month, both sides committed to negotiating the first phase of the BTA by the fall of 2025.

The discussions are being led by Assistant US Trade Representative Brendan Lynch, currently on a five-day visit to India. The possibility of India receiving a waiver from the upcoming tariffs remains unclear.

Mr. Jaishankar addressed concerns about opening up India’s protected agricultural market, stating that the benefits of a BTA outweigh the challenges. He also confirmed that India is pursuing separate, advanced-stage free trade agreements with the European Union and the United Kingdom.

The Minister expressed optimism about a strengthened defense relationship with the US under the Trump administration, anticipating increased sharing of American technologies. He also noted a positive outlook for increased energy cooperation, with India aiming to diversify its energy sources and increase LNG imports from the US.

The ongoing negotiations with the US are viewed within the context of India’s broader strategy to reduce tariffs. India has already lowered tariffs with several countries, and its recent budget further indicated a willingness to reduce tariffs in specific sectors, including bourbon, wine, and electric vehicles. The US is also seeking to increase its exports of oil, gas, and military equipment to India to reduce the significant trade surplus India currently holds. Bilateral trade between the two countries totaled $190 billion in 2023, with the US being India’s largest trading partner and a significant source of foreign direct investment.

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