Union Minister of Commerce & Industry Piyush Goyal
| Photo Credit:
India will be able to accept a India-US bilateral trade deal only if the pact gives New Delhi a distinct advantage over its developing-country rivals in the American market, sources have said.“India could accept US tariffs locked-in at mutually agreed levels of around 18 per cent or so, close to what was agreed in the February framework, as long as these insulate against higher levies under the ongoing Section 301 investigations. But no deal will be acceptable which does not give India an advantage over competitors,” a source close to the negotiations told businessline.These intricacies will be discussed in details in this week’s negotiating round for which a US trade team, headed by chief negotiator Brendan Lynch, has arrived in New Delhi, the source added.Commerce and Industry Minister Piyush Goyal on Monday endorsed US Ambassador to India Sergio Gor’s recent statement that 99 per cent of the India-US trade deal was done. ”Mostly everything is finalised. As you know, US Ambassador Gor said that 99 per cent of the things have been finalised. Discussions are going on about small issues, commas and full stops,” he said talking to the media on Monday.It, however, needs to be seen how the legal changes that have taken place in the US subsequently get reflected in the final agreement, Goyal said.Under the February framework, the US offered to lower reciprocal tariffs for India from 25 per cent to 18 per cent—slightly better than rates offered to regional competitors such as Vietnam, Bangladesh, Indonesia, and Malaysia. It also rolled back the 25 per cent penalties imposed for buying Russian oil. In return, New Delhi agreed to cut tariffs on all industrial and many agricultural products.However, the deal stalled after a US Supreme Court ruling invalidated reciprocal tariffs. The US then imposed a temporary 10 per cent global tariff expiring July 23, alongside Section 301 investigations that threaten India with steep penalties imposed by the US Trade Representative office..“If the US agrees to exempt India from additional Section 301 penalties, both now and in the future, it is something that India could work with,” the source said. But one has to watch how the talks progress. “India’s ultimate objective is to get a trade deal with the US which is better than any of its competitors so that it gains a definite edge in the American market,” the source said.US Trade Representative Jamieson Greer, too, is expected to visit India. “But that will be after we reach an understanding on the Section 301 investigations and tariffs and we are closer to sealing the deal,” the source said.Published on June 1, 2026
