First tranche of trade deal 'finalised': Goyal - Business page 15 - Commerce Minister Piyush Goyal said first tranche of India-US interim trade deal has been finalised and will be announced in line with changed circumstances.
Negotiations began after February framework. Finance Minister Nirmala Sitharaman said talks reached plateau beyond which compromise difficult. USTR said deal in final stages, not imminent. Jaishankar said heading towards landing point.
Goyal's statement Saturday comes a year after framework, after Supreme Court in US invalidated reciprocal tariff regime and after US launched Section 301 investigation into overcapacity targeting China and 15 economies including India. US says structural excess capacity in autos, EVs, batteries, chemicals, semiconductors, solar pushes down prices elsewhere.
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For India, two concerns remain. One, whether deal which entails significant concessions given Donald Trump administration's unusual approach will result in competitive tariff advantage over Vietnam, Mexico. Two, US has on various occasions imposed fresh curbs despite having signed trade agreements - visible in dispute with Canada despite USMCA 2020.
Trade also complicated by Lindsey O Graham Sanctioning Russia and Iran Act 2026 giving Trump power to impose up to 100% tariffs on buyers of Russian oil and gas. Pattern seen July 2025 when Washington spared China but imposed additional 25% tariff on India for buying Russian crude. Threat appears aimed at forcing India to cut Russian purchases and sign unequal bilateral agreement.
For exporters, uncertainty itself is tax. Goods exports to US jumped 21% in August to $8.3 billion despite 50% tariffs, driven by electronics and engineering. Electronics jumped 89% to $5.5 billion as India made regulatory changes aiding American firms - lowering tariffs on bourbon and motorcycles, tax holiday for data centres, opening nuclear sector. Imports from US, driven by energy, rose 65% to $5.97 billion.
Goyal also said at Bloomberg New Economy Forum that India open to all countries as long as fair deal, continuity in engagement, and geopolitical situation does not deteriorate. On China, he said working to develop relations again, last word not scripted.
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Analytically, first tranche finalised likely means in-principle agreement on energy and electronics, not full tariff reduction. Real test is whether US removes 25% penal tariff on Russian oil purchase. Without that, Indian textile clusters in Tiruppur and engineering in Ludhiana still uncompetitive.
Safe relationship, as Goyal calls US ties, but not yet signed.
Tags: #IndiaUSTradeDeal #PiyushGoyal #TrumpTariffs #Section301 #RussianOil #USTR #Overcapacity #TradeNegotiations #Jaishankar #Electronics