Tariffs, Section 301 Probe, And More: Where Trade Deal Stands As India, US Return To The Table

Last Updated:April 20, 2026, 14:30 IST

An Indian team, led by chief negotiator Darpan Jain, is in Washington, to advance discussions on the proposed bilateral trade agreement, starting with a limited “phase one” deal.

A high-powered Indian delegation will be in Washington from today for a fresh round of trade negotiations with the United States, signalling a renewed push to break the deadlock in talks that have drifted between progress and friction over the past year. The team, led by chief negotiator Darpan Jain, Additional Secretary in the Department of Commerce, and other key trade negotiators, will focus on advancing discussions on the proposed bilateral trade agreement, starting with a limited “phase one" deal. The timing is significant, coming soon after a recent conversation between Prime Minister Narendra Modi and US President Donald Trump, which has helped reset the tone around the relationship.

Ahead of the trade talks, Foreign Secretary Vikram Misri had engaged with US officials in Washington, reviewing what he described as the “full spectrum of the India-US relationship." As Misri put it, the discussions span “trade, technology, defence and strategic coordination," reflecting how economic negotiations are now closely tied to wider strategic priorities. This backdrop gives the current round of talks added weight, with both sides looking to convert political momentum into tangible progress.

What Is New In The Fresh Round Of India-US Talks?

According to reports, the current discussions are not limited to tariffs and market access. They may also take up two ongoing investigations launched by the US Trade Representative under Section 301 of US trade law. India has rejected the allegations in both cases, and has asked Washington to withdraw the probes, arguing they lack strong justification.

These investigations add a legal and political layer to the negotiations, making the current round more complex than earlier ones.

What The Earlier Draft Deal Looked Like

Before talks stalled, both sides had moved closer to a workable framework. The US had agreed to reduce tariffs on Indian goods from as high as 50 per cent to around 18 per cent. The Us also agreed to the removal of an additional 25 per cent tariff linked to India’s purchase of Russian oil.

As per the latest draft, the US was willing to draw a roadmap to lower duties further over time.

Meanwhile, India had indicated willingness to reduce or eliminate tariffs on a wide range of US goods, including animal feed, nuts and fruits, soybean oil, wine and spirits.

India is also looking at increasing imports from the US over five years in sectors such as energy, aircraft, technology products, and industrial raw materials.

This framework suggested a give-and-take structure, with both sides making calibrated concessions.

What Changed, And Why Talks Slowed Again?

The negotiating balance shifted after the US introduced a uniform 10 per cent tariff on imports from all trading partners, after the US Supreme Court struck down all of Trump’s earlier tariffs.

That move has had two key effects. It reduced the relative advantage India would have gained under the earlier draft deal and also forced negotiators to revisit and recalibrate the terms already discussed. Parts of the earlier understanding no longer deliver the same benefits, making a revision necessary.

What Are The Sticking Points In India-US Trade Deal Now?

Even before this shift, several issues had remained unresolved:

• US demands for greater access to India’s agriculture and dairy sectors
• India’s push for relief on tariffs affecting key exports
• Differences over non-tariff barriers and regulatory standards

These continue to be the core friction points in the talks.

PM Modi and Trump, have, however, signalled progress and an intent to push the deal through. PM Modi has emphasised strengthening the India-US Comprehensive Global Strategic Partnership, while maintaining that trade negotiations must align with India’s national interest.

Trump, meanwhile, has described his recent conversation with Modi as a “very good talk" and has repeatedly pushed for greater market access and tariff cuts, reflecting Washington’s priorities.

As talks progress, the likely outcome in the near term is not a sweeping free trade agreement, but a targeted, incremental deal that locks in selective gains while keeping space open for deeper negotiations later.

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