US-India Trade Deal Progress: First Agreement Expected by November, Modi & Trump Express Optimism Amidst Tariff Disputes
Washington D.C. – Negotiations between the United States and India are progressing towards a potential first tranche of agreement by november, with both sides signaling a commitment to finalizing a broader trade deal.Prime Minister Narendra Modi on Wednesday welcomed US President Donald Trump’s positive comments regarding the ongoing talks, stating his confidence that the negotiations will “pave the way for unlocking the limitless potential of the partnership between them.” Modi, referring to the two nations as “close friends and natural partners,” posted on X that both sides are actively working to conclude discussions as quickly as possible.
However, the path to a comprehensive agreement remains complex, shadowed by recently imposed US tariffs. President Trump has levied meaningful duties on Indian imports, escalating trade tensions.A total of 50% tariffs are now in effect on all goods imported from India, building upon a pre-existing 10% baseline import duty.
The latest tariff increase, a 25% duty, was enacted via executive order on August 6, 2025, and took effect on September 27, 2025. Prior to this, on July 31, 2025, Trump imposed a 25% tariff on all Indian goods entering the United States, preempting his initial deadline of August 1, 2025.
the US President has publicly linked the tariffs to India’s continued purchases of military equipment and crude oil from Russia,alleging that these purchases are indirectly supporting Russia’s war efforts in Ukraine. In a social media post, Trump claimed india is “enabling Russia” through its oil imports.
Despite the escalating tariffs, new Delhi has firmly maintained its position on energy security. Officials have stated that India will continue to purchase russian oil, as previously affirmed by Nirmala Sitharaman, despite the imposition of US tariffs.
The ongoing negotiations aim to address a range of trade concerns, including market access, intellectual property rights, and agricultural trade. While the initial agreement expected by November is likely to be limited in scope, both sides hope it will create momentum for a more comprehensive trade deal in the future.
Stay tuned for the latest updates on India-US trade talks.