CRBC News
Economy

India and U.S. Intensify Trade Talks as Tariffs and Farm Access Take Center Stage

India and U.S. Intensify Trade Talks as Tariffs and Farm Access Take Center Stage
India's Commerce Secretary Rajesh Agrawal speaks at the India-Russia Business Forum in New Delhi, India, December 4, 2025. REUTERS/Bhawika Chhabra

India and the United States have stepped up talks in New Delhi to advance a bilateral trade agreement. U.S. Deputy Trade Representative Rick Switzer led a two-day delegation as India seeks relief from punitive U.S. tariffs tied to Russian oil purchases. The tariff hikes — up to 50% on some goods — contributed to a near 9% year-on-year drop in October exports to the U.S. Washington is also pressing India to lower barriers and open its agricultural market to U.S. products.

India's Commerce Secretary Rajesh Agrawal met with U.S. Deputy Trade Representative Rick Switzer in New Delhi to advance negotiations on a bilateral trade agreement, the Indian government said on Wednesday.

The two delegations "exchanged views on matters related to India-US trade and economic ties including on the ongoing negotiations for a mutually beneficial Bilateral Trade Agreement," the Indian trade ministry said in a post on X.

Context: Switzer is leading a U.S. team in New Delhi for two days of discussions as India seeks relief from punitive tariffs imposed by Washington tied to New Delhi's purchases of Russian oil.

India and U.S. Intensify Trade Talks as Tariffs and Farm Access Take Center Stage - Image 1
Shipping containers are parked at Thar Dry Port in Sanand in the western part of Gujarat, India, August 27, 2025. REUTERS/Amit Dave

Tariff Actions and Trade Impact

In August, U.S. President Donald Trump doubled tariffs on certain imports from India to as much as 50%, affecting shipments of textiles, chemicals and food products such as shrimp. Indian government data show exports to the United States fell nearly 9% year-on-year in October to $6.31 billion from $6.91 billion a year earlier, though October's figure was up from September's $5.47 billion.

Market Access and Agricultural Trade

Washington is also pressing India to reduce tariffs and non-tariff barriers on U.S. goods and to open its market to American agricultural products, including soybeans and grain sorghum. U.S. Trade Representative Jamieson Greer told lawmakers that India had resisted larger imports of U.S. farm and meat products but had been "quite forward leaning" in the latest round of talks.

"Both sides discussed progress on the ongoing negotiations for a mutually beneficial Bilateral Trade Agreement," the trade ministry said.

The talks underscore growing economic tensions and the push for a negotiated settlement that could ease punitive measures while addressing U.S. concerns about market access for agricultural and industrial goods.

Similar Articles