U.S. trade representative Greer says deal with India not 'imminent' after Modi-Trump call

• India's continued purchase of Russian oil remains a critical sticking point, with the U.S. threatening tariffs up to 100% while India faces supply constraints due to the Iran war
• India seeks to protect its politically sensitive agricultural sector and maintain preferential tariffs that give it competitive advantages over peers in the U.S. market
• Indian Commerce Minister Goyal appeared more optimistic about reaching an 'early conclusion' of a mutually beneficial interim agreement, highlighting different perspectives on negotiation progress

Summary: U.S.-India Trade Deal Not Imminent Despite High-Level Talks

U.S. Trade Representative Jamieson Greer stated Thursday that a trade agreement with India is not "imminent," despite ongoing negotiations. His comments follow a phone call between President Donald Trump and Indian Prime Minister Narendra Modi, which Greer described as "very constructive."

Key Developments:

• Greer acknowledged that negotiators have "identified the universe of items that are sticking points," but critical issues remain unresolved
• Indian Commerce Minister Piyush Goyal expressed optimism about an "early conclusion of a mutually beneficial interim agreement," highlighting differing perspectives between the two sides
• Bilateral meetings occurred during the G20 trade ministers meeting in Milwaukee

Major Friction Points:

India's continued purchases of Russian oil represent a significant obstacle for Washington, which views these transactions as funding the Ukraine war. For New Delhi, protecting its politically sensitive agricultural sector and maintaining preferential tariffs are top priorities.

Tariff Context:

• The U.S. imposed 25% punitive tariffs on India in August for buying Russian oil, raising total duties to 50%
• Tariffs were reduced to 18% in February 2026 after Trump claimed India agreed to stop purchasing Russian oil
• India now faces potential tariffs up to 100% if it continues Russian oil imports
• New Delhi seeks preferential tariffs to make its exports more competitive in the U.S. market

Current Challenges:

The Iran war has constrained global oil supplies, forcing India to maintain Russian energy purchases despite U.S. pressure. Experts suggest both countries have reached "the limits of trade complementarities," with neither side able to accommodate the other's core demands at present.