India-US trade talks to resume on April 20 as tariff changes force BTA rethink

The India-US talks over the first phase of the bilateral trade agreement (BTA) are set to begin on Monday (April 20). About a dozen officers from India will reach Washington for three-day talks with the US authorities.

The development assumes significance in view of the fact that the US Supreme Court had struck down President Donald Trump’s sweeping global tariffs, following which he imposed a 10 per cent tariff on all countries from February 24 for 150 days. The framework of the BTA was released on February 7.

Delegation and key issues

“The meeting will happen from April 20-22 in Washington DC. India’s chief negotiator Darpan Jain (additional secretary in the Department of Commerce), is leading the team. Officers from the customs and the External Affairs Ministry are also part of the Indian team,” said an official as quoted by PTI.

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The report further stated that the two unilateral investigations launched by the US Trade Representative (USTR) may also figure in the three-day talks.

India has pushed back against the allegations flagged by the US Trade Representative in the two Section 301 investigations, calling the basis of the probes inadequate. It has sought their termination, arguing that the initiation notice does not lay out sufficient grounds to support the claims.

BTA framework under scanner

The position comes against the backdrop of the bilateral trade agreement framework, under which the US had agreed to lower tariffs on Indian goods to 18 per cent from 50 per cent. The arrangement also did away with the 25 per cent duties imposed on Indian exports linked to purchases of Russian oil, with a commitment to bring down the remaining 25 per cent to 18 per cent.

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That understanding, however, ran into complications after the US Supreme Court ruled on February 20 against the reciprocal tariffs introduced by Trump under the International Emergency Economic Powers Act. In the days that followed, the administration moved to impose a uniform 10 per cent tariff on all countries for 150 days beginning February 24.

The shift forced a pause in scheduled engagement. A meeting between the chief negotiators, initially planned for February, was deferred and is now slated to take place in Washington from April 20, 2026.

Rework likely as dynamics shift

Under the earlier framework, India had indicated willingness to ease or remove duties across US industrial goods and a broad set of agricultural imports, including feedstock such as DDGs and red sorghum, along with nuts, fruits, soybean oil, wine and spirits. It had also signalled plans to scale up purchases of US energy, aircraft components, precious metals and technology products over five years.

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With tariff conditions now flattened across trading partners, the relative advantage built into the draft arrangement has narrowed, prompting a rethink. “So the agreement will have to be recalibrated, redrafted,” the report quoted a government source, adding, “that amount of change will take place from their side”.

“In our case, since the agreement has not been signed, we have the option where we can right now change whatever needs to be changed,” the official said.

China overtakes US in trade

The broader trade environment is also shifting. China has emerged as India’s largest trading partner in 2025-26, overtaking the US, which held that position for four straight years until 2024-25.

Trade data reflects a mixed trend. India’s exports to the US edged up 0.92 per cent to USD 87.3 billion in the last fiscal year, while imports rose 15.95 per cent to USD 52.9 billion. The surplus narrowed to USD 34.4 billion from USD 40.89 billion a year earlier.

(With agency inputs)

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