India-US Trade Deal Talks Reach Final Phase, But Signing Not Imminent

United States Trade Representative (USTR) Jamieson Greer has said that India and US trade deal talks are in their final phase, but the signing of the deal is not “imminent” as both countries have identified a “universe of items that are sticking points”. Greer made these remarks Thursday after he met Commerce and Industry Minister Piyush Goyal during the G20 Trade Ministers’ Meeting amid talks on a bilateral trade deal between negotiators in Washington. The US is expected to come out with the results of its second Section 301 trade investigation on “overcapacity”. Washington has already imposed 10% tariffs on India on grounds of import of items produced using forced labour. “So we had a very constructive conversation, Minister Goyal and myself. Our staff is meeting right now, since they are in the country and we are here. We are continually trying to finish the trade deal with India. I would characterise it as we say in the US, we are in the short strokes. So I think we are toward the end of it. The President (Trump) and Prime Minister (Modi) did have a very constructive call yesterday morning US time,” Greer told a press briefing. “At the same time, I don’t think there’s something imminent, but we truly have identified the universe of items that are sticking points. We are working diligently toward them. My sense is that the President, the Prime Minister may have another call, very soon on this, just to assess progress in where we are,” he said. As India and several other countries await the results of Section 301 investigation related to overcapacity, Goyal said India does not have structural excess manufacturing capacity in the sectors identified by the G20 Presidency, asserting that the country’s manufacturing capacity serves both domestic and global needs. “India’s manufacturing capacity serves its domestic and global needs and that, in the sectors identified by the G20 Presidency, India does not have structural excess capacity,” he said. The US also has fresh leverage on India after Trump signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, giving himself the authority to impose tariffs up to 100% on countries, including India and China, that continue buying Russian oil and gas. The Ministry of External Affairs has said the government remains committed to ensuring the nation’s energy security “through diversified sourcing and based on evolving market dynamics”. It has said that the proposed legislation’s implications for the India-US relationship as well as the global energy market have been flagged in discussions with US representatives.