“The deal… is there. We literally have the paper,” the U.S. official said on condition of anonymity on the sidelines of the ASEAN Foreign Ministers’ meeting in Manila.
What remains outstanding, the official said, is Washington’s completion of its Section 301 trade investigations. The statute covers unfair trade practices and allows the U.S. to impose tariffs or take other retaliatory measures.
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Washington and New Delhi have been negotiating a bilateral trade agreement to expand market access and lower trade barriers as part of efforts to deepen economic ties.
The official said the agreement was nearly complete, with the remaining delay stemming from ongoing U.S. trade investigations rather than unresolved bilateral issues.
The official said one Section 301 probe covering 60 countries was expected to conclude this week or next. Once that and other ongoing investigations are completed, “we’ll start seeing progress, not just in India but in other places,” they added. Asked when the agreement could be concluded, the official replied: “Maybe another three, four months.”
Washington has already proposed new tariffs of up to 12.5% on dozens of nations, including India, over allegations they failed to curb trade in goods made with forced labour.
Separately, U.S. President Donald Trump said on Tuesday generic drugs imported into the United States would remain tariff-free for two years from August 1 before facing tariffs of 100% for a year and 200% thereafter, a move that could affect India’s pharmaceutical industry.
India is the most exposed among generic drug exporters, with the United States accounting for $9.7 billion, or nearly 38%, of its $25.8 billion pharmaceutical exports in 2025.