US and Indian officials have signaled that trade deal negotiations have reached an impasse. Indian Finance Minister Nirmala Sitharaman stated talks have "reached a plateau" beyond which compromise would be difficult. This follows comments from US Trade Representative Jamieson Greer that a deal was in final stages but not imminent.
The two sides agreed to an interim agreement earlier this year. Indian officials have sought assurances regarding favorable tariff rates and protection from additional penalties. Speaking at the Munich Security Conference, Sitharaman noted negotiations have been difficult and rigorous, suggesting both sides may have hit a ceiling.
The talks have been complicated by new US legislation allowing President Donald Trump to impose tariffs of up to 100% on top buyers of Russian oil and gas. India, a major Russian energy importer, has warned such measures could hurt bilateral ties and disrupt global energy markets. US-India ties have strained over the past 18 months, with Trump imposing then removing punitive tariffs for Russian oil purchases.
Trump and Indian Prime Minister Narendra Modi held their first phone call since June to discuss trade and energy. US Trade Representative Jamieson Greer met Indian Commerce Minister Piyush Goyal in Milwaukee last week to iron out disputes. Greer described the process as being in the "short strokes," indicating progress on identifying sticking points.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing