India, US Continue Talks on Bilateral Trade Agreement Amid Tariff Disputes and Visa Fee Hike

Amid escalating trade tensions, India and the United States have resumed discussions on key elements of a proposed Bilateral Trade Agreement (BTA), with both sides agreeing to continue engagement toward an early and mutually beneficial deal. The talks come against the backdrop of recent tariff hikes and visa policy changes by the US that have impacted Indian interests.

An Indian delegation led by Commerce and Industry Minister Piyush Goyal visited the US from September 22 to 24, where it held high-level meetings with American officials, businesses, and investors. Goyal met with Ambassador Jamieson Greer of the United States Trade Representative (USTR) office and Sergio Gor, the US Ambassador-designate to India, to deliberate on trade issues and investment opportunities.

According to an official statement, “Both sides exchanged views on the possible contours of the deal and decided to continue the engagements with a view to achieve early conclusion of a mutually beneficial Trade Agreement.” The Indian government described the meetings as “constructive” and noted a “positive response” from both US officials and business leaders.

The talks follow recent moves by the US, including a 25% tariff imposed in July on Indian goods, followed by an additional 25% tariff in August, citing India’s continued imports of Russian oil. These combined 50% tariffs took effect on August 27. Additionally, the US announced a $100,000 fee on fresh H-1B visa petitions, a move expected to disproportionately affect Indian tech workers, who make up over 72% of H-1B holders.

Adding to the pressure, former President Donald Trump recently announced a 100% tariff on branded and patented pharmaceutical products starting October 1, 2025. This measure could significantly impact India, which has the highest number of US FDA-approved pharmaceutical manufacturing plants outside the US. In FY2024-25, India exported $21.7 billion worth of pharmaceutical products, with the US as a major market.

While India remains cautious about opening sensitive sectors like agriculture and dairy, both nations are aiming to finalize the first stage of the BTA by late 2025. For now, both sides appear committed to ongoing dialogue despite growing economic and diplomatic strains.