India’s Foreign Minister S. Jaishankar told an Asia Society event in New York that a 10% tariff imposed by the United States on Indian imports under Section 301 has stalled the trade deal.
The two countries had announced a framework for the first phase of the trade pact in February, but the U.S. Supreme Court’s strike‑down of President Trump’s emergency tariffs forced Washington to adopt a new tariff regime. In July, the U.S. added a 10% duty on imports from India, citing concerns over forced labour.
Jaishankar said the U.S. tariff changes were a 'complexity' that required patience and detailed negotiation. He added that India’s small‑producer economy and the vast per‑capita gap made the negotiations delicate.
Commerce Minister Piyush Goyal echoed the view that the deal is 'done and dusted' but will only be executed once India gains a competitive advantage. He will travel to the U.S. from September 29 to October 5 to push the talks.
Both sides plan to resume talks after the U.S. Treasury finalizes the tariff framework, with the agreement expected to be signed before the end of the year.