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US trade chief says deal with India in final phase but not yet ready
Reported by Tanvi Pillai (Section Editor) · Indian Express - Business ·
Confirmed by a second source: Business Standard - Top Stories
Representative image · Wikimedia CommonsUPDATE - follow-up to India trade deal not imminent, sticking points identified: USTR: United States Trade Representative Jamieson Greer says trade talks between India and the US are in their final phase, though a signing is not imminent because both nations have identified specific items that remain sticking points.
Talks and Tariffs
Greer made these comments on Thursday after meeting with Indian Commerce and Industry Minister Piyush Goyal during the G20 Trade Ministers' Meeting. Negotiators are currently holding talks in Washington. Meanwhile, the US is preparing to release the results of its second Section 301 trade investigation on overcapacity. The US has already placed 10 percent tariffs on Indian imports due to claims that goods are made using forced labour. Greer stated that staff teams are meeting actively to try to finish the deal, noting that US President Trump and Prime Minister Modi had a constructive phone call.
Energy and Sanctions
The US holds additional leverage after President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law. This gives the US authority to place tariffs of up to 100 percent on countries like India and China that keep buying oil and gas from Russia. In response, India's Ministry of External Affairs stated that the government remains committed to protecting national energy security by using varied sources based on market needs, and has raised concerns about the new law with US officials. Furthermore, Goyal responded to the overcapacity issue by stating that India does not have structural excess manufacturing capacity in the sectors named by the G20 Presidency, and that local factories serve both local and global markets.
Context
Bilateral trade talks between large economies often face prolonged hurdles over specific tariff lines and market access demands. At the same time, geopolitical policies regarding energy imports regularly intersect with broader commercial negotiations between Washington and New Delhi.
What changed since yesterday
- The India‑US trade deal is not imminent, according to USTR Jamieson Greer
- India-US trade deal in final phase but not imminent, says USTR Greer
Latest
US trade chief says deal with India in final phase but not yet ready
ExplainerWhy this matters
What Happened
US Trade Representative Jamieson Greer stated that trade talks with India are nearing their end, but unresolved sticking points prevent an immediate signing of the agreement.
Why It Matters
The ongoing negotiations take place alongside contentious US measures, including Section 301 investigations on overcapacity, existing tariffs on goods linked to forced labour, and potential heavy penalties under the newly signed Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 for nations buying Russian energy. These intersecting economic policies create significant friction in broader bilateral ties and directly impact India's energy security and export markets.
What Happens Next
Leaders from both countries are expected to hold further discussions to evaluate progress on the remaining sticking points, while India continues to engage US representatives regarding the implications of the new energy sanctions.
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