US-India Trade Deal Nearing Completion, Says US Envoy

US Ambassador Sergio Gor told NDTV the India‑US trade agreement is "very close" and will happen, after a US Supreme Court ruling required parts of the deal to be reworked. India’s Commerce Minister Piyush Goyal said the first tranche is now undergoing legal drafting. The remarks came as both sides signalled confidence in reaching a final deal soon.

Key facts

• US Ambassador Sergio Gor said the deal is "very close" and will happen
• A US Supreme Court ruling forced a reworking of the agreement
• India’s Commerce Minister said the first tranche is in legal drafting
• Bilateral trade between India and the US has exceeded $250 billion
• India aims for $500 billion trade with the US in the next three years
• Negotiations have been ongoing since early 2025

Background of the US‑India Trade Negotiations

India and the United States have been negotiating a comprehensive trade pact since early 2025 to address tariff friction, remove non‑tariff barriers and improve market access for each other’s goods. The talks aim to give Indian exporters better tariff treatment in the US compared with competitors, while also easing regulatory hurdles.

The process was interrupted when the US Supreme Court struck down tariffs imposed under emergency powers, requiring parts of the agreement to be re‑drafted. Both sides have referenced long‑standing trade talks, noting that similar negotiations with the European Union took two decades, while the current dialogue has already reached a "landing point" after about a year and a half.

US officials highlighted the rapid growth of bilateral trade, now over $250 billion, and a shared ambition to reach $500 billion within three years, underscoring the economic importance of concluding the pact.

What this means for exporters and importers in Punjab

For exporters in Punjab and North India – such as manufacturers of textiles, machinery, auto parts and pharmaceuticals – a completed deal could lower US tariffs on their products, making them more price‑competitive in the American market. It may also reduce non‑tariff obstacles, easing customs procedures for shipments to the US.

Importers in the region could see changes in US‑origin duties and possible adjustments to regulatory requirements, affecting inputs like electronic components or raw materials sourced from the United States. Until the agreement is finalised, firms should monitor updates, as the exact tariff schedules and rules remain pending.

What you can do now

• Check the HS codes of your export products with your customs broker to see how they may be re‑classified under a future US‑India tariff schedule
• Stay in touch with your freight forwarder for any changes in documentation or compliance requirements for US shipments
• Monitor official announcements on the deal’s progress and be ready to adjust pricing or market strategies if lower US tariffs are confirmed
• If you import US‑origin inputs, review current duty rates and consider alternative sourcing while awaiting the final agreement