India Seeks Swift Trade Deal with U.S. Amid Tariff Pause:

India is pushing to finalize a trade agreement with the United States following President Donald Trump’s decision to temporarily pause reciprocal tariffs on several countries, including India. The move, which coincides with increased tariffs on Chinese imports, opens a window for India to accelerate negotiations.

Trade Talks Progressing Toward 2025 Goal

In February, India and the U.S. agreed to begin discussions aimed at forming a phased trade deal. The first phase is expected to be completed by autumn 2025. The long-term goal is to grow bilateral trade to $500 billion by 2030.

A senior Indian government official, speaking anonymously, emphasized the significance of the 90-day pause on tariffs. The temporary relief is particularly beneficial for Indian shrimp exporters, who are among the key stakeholders impacted by U.S. tariff policies.

India Among First to Initiate Trade Deal Framework

The official highlighted that India was one of the earliest nations to begin formal discussions with the U.S. on a trade pact, and both countries have already committed to a clear timeline for reaching an agreement.

The ongoing talks are being led by India’s Ministry of Commerce and Industry, which has not issued an official response to recent developments. The ministry is coordinating efforts to maintain momentum as the U.S. reassesses its trade strategy.

Tariff Adjustments: A Global Trade Trigger

Trump's move to ease duties on several trading partners, including India, follows closely after his announcement of higher tariffs on Chinese goods. These policy shifts have caused volatility in global markets, reminiscent of the uncertainty experienced at the beginning of the COVID-19 pandemic.

To intensify trade pressure on China, Trump confirmed a new 125% tariff rate on Chinese imports. In contrast, the reciprocal tariff applied to India remains steady at 10%, providing some relief and stability for Indian exporters during the negotiation period.