India and the US held “constructive and positive discussions” across issues, covering trade in goods and non-tariff measures and “reaffirmed” their commitment to conclude a mutually beneficial bilateral trade agreement (BTA) that strengthens trade and economic ties, according to the Commerce Department.A trade delegation from the US, led by chief negotiator Brendan Lynch, held negotiations with the Indian team from June 1-4 to advance negotiations on the BTA and push it towards conclusion. “The engagements were marked by a spirit of cooperation and pragmatism, with both sides reaffirming their commitment to concluding a mutually beneficial agreement that strengthens bilateral trade and economic ties,” the statement issued on Thursday noted.A possible timeline for concluding the negotiations was not mentioned in the statement but efforts are on to have a pact in place as soon as possible, sources said.The Commerce Department release mentioned the India-US joint statement issued on February 7, 2026 agreeing on a framework for an interim agreement regarding reciprocal and mutually beneficial trade.India had agreed to additional US tariffs of 18 per cent in the framework as at that time it faced US reciprocal tariffs of 25 per cent and another 25 per cent penal tariffs for buying Russian oil.Subsequently, the penal tariffs were rolled back by the Trump regime while the US Supreme Court invalidated the reciprocal tariffs. It was replaced by a 90-day global tariff of 10 per cent that is set to lapse on July 24.But India is now facing possible Section 301 tariffs of 12.5 per cent (for forced labour), with the tariff burden likely to increase after the second Section 301 investigation report (on excess capacity) is out.“There is a possibility that the US will agree to cap the tariffs under the BTA at 18 per cent or so. That is what is being negotiated. India has demanded more market access than its competing countries such as Vietnam, Bangladesh and Indonesia,” a source said.Published on June 4, 2026