While trade experts suggest a 'zero-for-zero' tariff strategy could be proposed, officials believe it is impractical due to the differing economic statuses of the U.S. and India.

Political challenges may arise over agricultural market access, a critical issue for both nations, as highlighted by former U.S. National Security Council official Lisa Curtis.

In light of President Trump's decision to pause reciprocal tariffs for several nations, including India, there is a renewed urgency to expedite the trade deal.

Trade officials have indicated that a mutually beneficial agreement could potentially be reached within the next 90 days.

Negotiations for a trade agreement between India and the U.S. commenced in March 2025, with the aim of finalizing the first phase by late 2025 and increasing bilateral trade from approximately $191 billion to $500 billion by 2030.

A significant point of contention in the negotiations is India's reluctance to lower tariffs on staple crops like rice and wheat, although it is open to reducing tariffs on products such as almonds and cranberries.

India currently imposes high tariffs of up to 60% on certain dairy products, which U.S. officials argue restrict access to the large Indian dairy market.

The U.S. has implemented a cap on additional tariffs for countries other than China, which faces tariffs of up to 145%, prompting India to closely monitor its exports to prevent misuse of its trade routes.

The focus on strategic trade deals has left major trading partners like the EU, China, Canada, and Mexico in a state of uncertainty, as they account for over $3.1 trillion in trade with the U.S.

The negotiations are part of a broader strategy by the Trump administration to secure more purchases of American natural gas and reduce tariffs on U.S. exports.

As the negotiations progress, the U.S. is urging India to eliminate non-tariff barriers, including various import restrictions that complicate trade.