India and the United States appear closer than ever to sealing a long-awaited trade agreement, as both sides push to resolve tariff disputes that have strained commercial ties for over a year. Commerce Secretary Rajesh Agrawal said on Monday (November 17, 2025) that negotiations are “virtually nearing closure”.
He shared that India-US trade talks are nearing closure with a package that includes market-access issues, the contentious 25% reciprocal tariffs, and the additional 25% duties Washington imposed on Indian imports earlier this year. The pact, first proposed in February 2025 following directives from top leadership, aims to propel bilateral trade from the current $191 billion to $500 billion by 2030.
“We are engaged with the US on the BTA. It has two parts. One part of the negotiations will take time. The other part is a package which can address reciprocal tariffs. We are working on both aspects. The package that can address reciprocal tariffs is more or less near closure, and we should get it soon,” the official said.
India-US trade deal soon?
The agreement is being crafted as a “highly detailed, WTO-compliant treaty,” with sensitivities in agriculture, dairy, and strategic sectors factored in. Commerce Secretary Agrawal, while confirming that the deal has two components, noted that another formal round of talks may not be necessary at this stage.
India-US trade deal will be announced on a mutually agreed date. So far, six rounds of talks have been completed. Both sides have announced plans to finalise the first tranche of the deal by the fall of 2025.
How Tariffs and Russia factor are shaping the negotiations?
The latest push toward a deal comes after Washington imposed an additional 25% tariff, taking the total duty to 50%, on Indian imports, citing New Delhi’s continued purchase of discounted Russian crude. India has defended its procurement on economic and energy-security grounds, but the move significantly slowed trade talks through mid-2024.
A senior Indian official said the negotiations have since been “cautious but comprehensive,” adding that the US side “now has to get back to us” before closure.
What is President Trump signalling on sanctions and tariffs?
Even as both nations attempt to stabilise economic ties, US President Donald Trump on Sunday (November 16, 2025) hinted he may support sweeping Senate legislation targeting countries that continue energy trade with Russia. Speaking to reporters in Florida, Trump said he would be “okay” with sanctions on nations doing business with Moscow.
This proposal includes potential tariffs of up to 500% on imports from countries buying Russian energy without backing Ukraine. The measure directly implicates China and India, two of Russia’s largest crude buyers. Trump added that he is considering adding Iran to the list of targeted nations but offered no further details.
Efforts in the US Congress have intensified, with 85 senators reportedly willing to authorise Trump to impose tariffs as high as 500% on China for buying Russian oil. The Trump administration has already sanctioned Russia’s major oil giants, Rosneft and Lukoil, but Moscow has continued its military campaign.