The U.S. and India are close to finalizing an interim trade deal, but gaps persist over pulses and the pacing of tariff reductions. “We’re not that far off from finalizing the interim trade deal, but some gaps remain,” a U.S. official told The Hindu. Washington officials are now addressing details following a Supreme Court ruling.
Washington DC. Negotiations between the U.S. and India for an interim trade deal are advancing, though differences linger on market access for pulses and the timeline for tariff reductions. A U.S. official recently told The Hindu that the two countries are “not that far off” from agreement. On February 20, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA), basis for President Donald Trump’s reciprocal tariffs, was unlawfully applied. The administration is now pursuing alternatives, including Special 301 investigations by the Office of the U.S. Trade Representative (USTR). India seeks to protect its pulses market, while the U.S. pushes for greater access—a sensitive political issue for both. Last month, a White House fact sheet listed “certain pulses” for tariff cuts, sparking controversy in India; it was later reissued without that reference. Washington also wants faster tariff phase-downs. Currently, U.S. officials are focused on March-launched Special 301 probes against India and others for excess manufacturing capacity and forced labor. A 10% universal tariff under Section 122 was imposed on February 24, limited to 150 days and up to 15%. Trump mentioned raising it to 15% in February, but it has not occurred. Meanwhile, the WTO’s 14th ministerial conference in Cameroon, March 26-29, highlights e-commerce divides, with India opposing a permanent tariff moratorium.
