US-India trade deal hangs in the balance after months of tense talks

From routine talks to a geopolitical showdown—how a trade deal became a test of wills. The clock is ticking for both nations to strike a compromise.

, and Administrator

2025 November 26 . 3:29 AM

1 min read

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US-India trade deal hangs in the balance after months of tense talks

India and the US are on the brink of finalising an interim trade deal after months of tense negotiations. The agreement, once seen as routine, has turned into a high-stakes geopolitical contest. Both nations now face pressure to compromise as the window for diplomatic manoeuvring closes.

Talks began as standard trade discussions but escalated when US President Donald Trump demanded 'reciprocal tariffs'. His administration pushed for the removal of Indian tariffs on most industrial goods, greater access to India’s farm and dairy sectors, unrestricted data flows, and larger commitments to buy US exports. In return, Washington offered to reduce tariffs on Indian goods.

A breakthrough could redefine trade dynamics across the Asia-Pacific and beyond. If talks collapse, India may accelerate efforts to reduce reliance on foreign markets. The outcome will determine whether the two nations move toward deeper cooperation or a more isolated economic future.