"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.
The remaining delay is linked to the completion of Washington’s Section 301 trade investigations, which examine alleged unfair trade practices and allow the United States to impose tariffs or other retaliatory measures against countries involved in such practices.
The United States and India have been engaged in negotiations for a bilateral trade agreement aimed at expanding market access, reducing trade barriers, and strengthening economic cooperation between the two nations. The official said the agreement is nearly finalized, with no major bilateral issues left unresolved.
According to the U.S. official, one Section 301 investigation covering 60 countries is expected to conclude this week or next. After the completion of this and other ongoing investigations, progress is expected not only with India but also with other countries involved in similar trade discussions.
When asked about the expected timeline for finalizing the agreement, the official said, "Maybe another three, four months."
Washington has already proposed new tariffs of up to 12.5% on dozens of countries, including India, over allegations that they have failed to prevent trade in goods produced using forced labour.
Meanwhile, U.S. President Donald Trump announced on Tuesday that generic medicines imported into the United States would remain exempt from tariffs for two years starting August 1. After that period, tariffs of 100% would apply for one year, followed by 200% tariffs thereafter, a move that could significantly impact India’s pharmaceutical industry.
India remains one of the most exposed exporters of generic medicines to the U.S. market, with the United States accounting for $9.7 billion, or nearly 38%, of India’s total pharmaceutical exports worth $25.8 billion in 2025.
The progress on the U.S.-India trade agreement marks a significant development in bilateral economic relations, while ongoing trade investigations and proposed pharmaceutical tariffs remain key factors influencing future trade dynamics between the two countries.
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