US-India trade negotiations appear to have reached a difficult stage, with both sides identifying key sticking points and limited room for further concessions
Washington’s tariff policy is driven by its concern over trade deficits. India faces the prospect of further tariffs as the US reviews trade and industrial practices
India had a trade surplus of about $34 billion with the US in 2025-26. Washington’s focus on this imbalance could make negotiations especially difficult
Reducing the US surplus would require India to shift imports from other countries to the US. That may not be efficient, nor can the US supply everything India needs
The US goods trade deficit exceeded $1.2 trillion in 2025 despite tariffs. Its deficit with China alone was over $200 billion, highlighting the scale of the challenge
India must remain engaged with Washington, including on trade. But its relationship with the US extends beyond commerce, making long-term strategic interests essential