India-U.S. Trade Talks Hit Plateau as 10% Tariffs and 100% Threats Erode Trust
Updated
Updated · POLITICO · Oct 6
India-U.S. Trade Talks Hit Plateau as 10% Tariffs and 100% Threats Erode Trust
1 articles · Updated · POLITICO · Oct 6
Summary
Indian Finance Minister Nirmala Sitharaman said negotiations with the U.S. have reached a “plateau,” while U.S. Trade Representative Jamieson Greer said no announcement is imminent despite talks being in the “short strokes.”
A key obstacle is tariffs: India already faces a 10% U.S. rate on about half its exports under a forced-labor probe, and it could be hit again by an overcapacity investigation and by tariffs of up to 100% under a new Russia-energy law.
New Delhi also wants a tariff edge over regional rivals, but Washington’s ongoing investigations limit what it can offer, leaving major sticking points unresolved even after months of claims that a deal was near.
Political support in India has weakened as local media highlighted the Russia sanctions bill, a proposed H-1B filing fee above $100,000 and other perceived anti-India signals, with one person familiar with the talks saying trust has eroded substantially.
The impasse marks a sharp reality check after both sides repeatedly signaled since summer 2025 that a trade deal was close, only to miss successive target dates.