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First phase of India U.S. trade deal nears finalization
The US has imposed a punitive tariff of 50 percent on most Indian goods, which is among the highest in the world.
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IANS - Thu, 15, Jan 2026
- 11:50 EST
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Indian Commerce Secretary Rajesh Agrawal with U.S. Deputy Trade Representative Rick Switzer / Courtesy: IANS
The first tranche of the India-U.S. trade deal, which is expected to result in lowering of the tariff hike imposed by the US administration on Indian exports, is close to being finalized, though no timeline can be committed, Commerce Secretary Rajesh Agrawal said on Jan. 15.
There was a virtual meeting between India's commerce minister, Piyush Goyal, and the U.S. Trade Representative (USTR), Jamieson Greer, in the last week of Dec. 2025, and negotiating teams on both sides are in continuous talks to arrive at a consensus, Agrawal said.
The US has imposed a punitive tariff of 50 percent on most Indian goods, which is among the highest in the world.
ALSO READ: U.S. envoy Sergio Gor presents credentials to Indian President
India hopes that exports to the U.S. will remain in positive territory. Electronics shipments, which are currently tariff-free, have been a key driver so far, even as higher duties continue to impact other sectors, the Commerce Secretary explained.
Both sides remain engaged and committed to securing a deal, Agrawal said.
Meanwhile, the newly appointed U.S. Ambassador in New Delhi, Sergio Gor, said earlier this week that India and the U.S. continue to be actively engaged in trade talks.
Gor said that President Trump conveyed “his best wishes to his friend Prime Minister Narendra Modi.”
“The friendship between Mr. Trump and Mr. Modi is real, and the U.S. and India are bound not just by shared interests but by a relationship anchored at the highest levels. Real friends can disagree but always resolve their differences in the end,” Gor remarked.
He also stated that while trade is very important for India-US ties, the two countries will continue to work closely together on other very important areas, such as security, counter-terrorism, energy, technology, education, and health.
Gor also announced that India will be invited to join PaxSilica as a full member next month. He explained that PaxSilica is a new initiative that the United States launched just last month to build a secure, prosperous, and innovation-driven silicon supply chain from critical minerals and energy inputs to advanced manufacturing, semiconductors, AI development, and logistics.
“Nations that joined last month include Japan, South Korea, the United Kingdom, and Israel. India’s inclusion would further strengthen the group,” he added.
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