US-India Trade Breakthrough: Positive Developments Signal Year-End Deal

Speaking to reporters on Thursday, the official confirmed that Washington is pursuing a reciprocal trade agreement with New Delhi while simultaneously addressing concerns over India's purchases of Russian oil.

"I think we've had a lot of positive developments with them recently," the official said, adding that talks could yield results "before the end of the year."

"I think we've had a lot of positive developments with them recently. We have two things going on with them. Of course, we have a reciprocal trade negotiation, but we also have a Russian oil issue, where we've seen market improvement on that end. So I think that we, I'd like to say we can relax and take a break, but there's still a lot to do, but a lot of positive progress going on already, and we may have more to come before the end of the year," the official told ANI.

The US administration is managing two parallel issues with India. The first involves reciprocal trade negotiations, which typically aim to balance tariffs and market access between countries. The second concerns what the official termed the "Russian oil issue," though they noted "market improvement on that end."

The White House announced Thursday that it has finalised preliminary trade agreements with four Latin American nations - Argentina, El Salvador, Ecuador, and Guatemala.

According to administration officials, these deals will offer tariff reductions on goods that cannot be grown naturally within US borders.

The comments came as the official outlined America's expanding trade engagement across multiple regions. Washington has been pursuing "quite constructive conversations" with Central and South American nations and has issued joint statements with Vietnam and Indonesia.

The official also mentioned recent progress with Switzerland, suggesting a pattern in which the Trump administration seeks bilateral deals rather than multilateral agreements.

As US President Donald Trump's close associate Sergio Gor begins his role as ambassador to India, Trump faces another diplomatic test. Speaking at Gor's swearing-in on Monday, US President Donald Trump indicated that tariff reductions on Indian imports could be forthcoming, pointing to potential progress on a trade deal.

A reciprocal trade deal could address long-standing issues between the world's largest and fifth-largest economies, including: US concerns over Indian tariffs on American goods, particularly motorcycles and agricultural products, India's desire for restored preferential trade status and greater access to US markets, Technology transfer and intellectual property protections, and Services sector access, particularly for Indian IT professionals.

The acknowledgement of progress comes after years of stop-start negotiations between Washington and New Delhi. Previous attempts at comprehensive trade agreements have stalled over disagreements on tariffs, data localisation, and e-commerce rules.

Neither the Indian Ministry of Commerce nor the Ministry of External Affairs had issued statements on the American official's comments at the time of publication.

Trade between the US and India reached approximately USD 190 billion in 2024, with both nations expressing ambitions to significantly increase bilateral commerce.

- ANI