US Delegation Heads to India for Critical Bilateral Trade Agreement Negotiations Amid Tariff Challenges

India maintains optimism regarding the finalization of the first tranche of the India-US Bilateral Trade Agreement.

According to official sources who spoke with ANI, a high-level delegation from the US Trade Representative's office, headed by Deputy US Trade Representative Ambassador Rick Switzer, will arrive in India for meetings from December 9-11, 2025.

Scheduled negotiations between the two countries will take place on December 10 and 11, addressing comprehensive trade-related issues as both nations strive to progress the Bilateral Trade Agreement (BTA). Commerce Secretary Rajesh Agarwal will serve as India's Chief Negotiator, leading the Indian team throughout these significant discussions.

Despite recent global trade challenges, India remains confident about completing the first tranche of the India-US BTA within the current calendar year. Speaking at the FICCI Annual General Meeting on November 28, Commerce Secretary Agarwal expressed optimism, stating, "I think our expectations....we are very optimistic and very hopeful that we should find a solution within this calendar year."

While negotiations have made considerable progress, the initial target of finalizing the first tranche by fall 2025 experienced delays due to emerging US trade policy developments, including tariffs imposed by President Donald Trump on Indian merchandise.

The BTA process has faced complications from US tariff measures, with President Trump implementing a 25 percent tariff on Indian goods beginning August 1, followed by an additional 25 percent increase shortly thereafter. These measures were justified by citing India's ongoing purchase of Russian oil as part of reciprocal tariffs on nations where the US experiences trade deficits. Despite these challenges, multiple rounds of discussions have occurred to finalize the agreement, which was formally proposed in February following directives from leadership in both countries. The BTA aims to significantly expand bilateral trade from the current USD 191 billion to USD 500 billion by 2030, with discussions first announced during Prime Minister Narendra Modi's Washington visit earlier this year.

The forthcoming negotiations reflect India's broader trade engagement strategy, as the country simultaneously pursues agreements with various partners. India has already established 14 Free Trade Agreements and six Preferential Trade Agreements with trading partners and is currently negotiating FTAs with several countries, including the European Union.

Speaking at the HT Leadership Summit 2025, External Affairs Minister Jaishankar emphasized India's autonomy in maintaining bilateral relationships with major countries, asserting that "for any country to expect to have a say on how we develop our relations with others is not a reasonable proposition." He reaffirmed India's commitment to upholding "strategic autonomy" and "freedom of choice" in its international engagements.