The U.S. and India are still working out the details on a trade deal over a year after negotiations began.
The U.S. and India launched bilateral trade talks in February 2025 following a meeting between U.S. President Donald Trump and India Prime Minister Narendra Modi. Since that time, the two countries have engaged in smaller trade actions, such as a trade deal in February 2026 that lowered U.S. tariffs on Indian goods.
India was hit by 25 percent tariffs implemented by the U.S. in 2025 – a total that was later increased to 50 percent after the U.S. targeted the country over its alleged purchases of Russian Federation oil.
India is a top source of shrimp for the U.S., with the country sending 296,104 metric tons (MT) in 2024. Because the product is also subject to antidumping and countervailing duties, the effective tariff rate on shrimp was even higher, and exports of Indian shrimp to the U.S. began to decline in the latter half of 2025 as a result.
Industry leaders in the country quickly called for diversification away from the U.S. market, which it said is the largest by far for exports, and its trade patterns have already begun to shift due to the U.S. tariffs. Despite the pressure, India’s shrimp exports grew in 2025 thanks to the country’s ability to pivot to other markets.
Now, the two countries are still negotiating a potential trade deal that could potentially shift things again, but media reports indicate India is holding out on a deal until it gets more guarantees from the U.S. on tariff rates.
Reuters reported India Trade Minister Piyush Goyal was pushing back on any deal unless it gives a meaningful advantage to India over competitors and no new tariffs after the deal is made. The publication claimed that no quick deal was likely and that Trump’s loss at the U.S. Supreme Court – which invalidated his tariffs backed by the International Emergency Economic Powers Act (IEEPA) – eased pressure.
Goyal responded to such reports, claiming his meeting with U.S. Trade Representative (USTR) Jamieson Greer was productive.
“This news is completely false, baseless, and misleading,” Goyal wrote on X. “I had fantastic meetings with USTR Jamieson Greer when he visited Delhi in June. Both sides reaffirmed their commitment to an agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers in both countries.”
As negotiations are ongoing, groups of farmers from the Indian state of Punjab met for a Mahapanchayat, or a gathering of people from multiple villages, against the proposed trade agreement, India Today reported. The farmers alleged the proposed trade pact would adversely affect Indian farmers and laborers, and many warned pushback would increase if an India-U.S. trade deal doesn’t address their demands.
