India-US trade deal in final phase but not imminent, says USTR Greer

UPDATE - follow-up to The India‑US trade deal is not imminent, according to USTR Jamieson Greer: United States Trade Representative Jamieson Greer stated that trade deal talks between India and the United States are in their final phase, though signing is not imminent due to identified sticking points.

Talks and Sticking Points

Greer made the remarks on Thursday after meeting Commerce and Industry Minister Piyush Goyal during the G20 Trade Ministers' Meeting. He noted that staff members are meeting in the country and described the status as being in the short strokes toward the end of the process. President Trump and Prime Minister Modi held a constructive call on Wednesday morning US time. Greer said both nations have identified a universe of items that are sticking points and are working diligently toward them, adding that the leaders may hold another call very soon to assess progress.

Section 301 and Tariffs

The US expects to release results from its second Section 301 trade investigation on overcapacity. Washington previously imposed ten percent tariffs on India over the import of items produced using forced labour. In response to concerns about manufacturing capacity, Piyush Goyal asserted that India does not have structural excess manufacturing capacity in the sectors identified by the G20 Presidency, and that the country's manufacturing capacity serves both domestic and global needs.

Sanctions and Energy

President Trump signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. This act gives the US President authority to impose tariffs of up to one hundred percent on countries like India and China that continue buying Russian oil and gas. The Ministry of External Affairs stated that the government remains committed to ensuring national energy security through diversified sourcing based on evolving market dynamics. The ministry also noted that the legislation's implications for the bilateral relationship and the global energy market have been flagged in discussions with US representatives.

Context

Bilateral trade talks between large economies often involve complex negotiations over specific tariff lines, market access, and domestic manufacturing protections. Trade investigations and legislative pressures frequently serve as tools used by nations to gain strategic leverage during such high-stakes economic discussions.