Balancing Trade And Strategy: India’s Calculated Approach To U.S. Tariff Talks

By Farwa Aamer, Asia Society Policy Institute’s Director of South Asia Initiatives

A high-level U.S. trade delegation, led by Brendan Lynch, the Assistant U.S. Trade Representative for South and Central Asia, is set to visit India from March 25-29, 2025. The timing is particularly significant—it comes just days before the Trump administration’s April 2 announcement on reciprocal tariffs, a move that could not only impact U.S.-India trade ties but also signal Washington’s broader trade strategy under President Trump’s second term, which could invite a number of countermeasures by impacted countries.

But India is following a more strategic approach.

At the core of this upcoming engagement is the continued effort to finalize the first key aspects of a multisectoral bilateral trade agreement (a two-stage pact), advance negotiations to define the contours of the agreement, and slowly but surely move toward the eventual and ambitious goal to reach $500 billion in bilateral trade by 2030. This goal, reaffirmed during Prime Minister Narendra Modi’s February visit to Washington, D.C., has driven sustained U.S.-India dialogue ever since, underscoring the commitment on both sides to deepen economic ties.

Commerce Minister Piyush Goyal’s follow-up engagements in Washington, D.C., in March, further reinforced India’s willingness to address U.S. concerns while ensuring that any concessions remain aligned with its domestic economic and political priorities. 

Rather than resorting to retaliation or countermeasures—an outcome both sides aim to avoid—India is adopting a pragmatic stance, recognizing that maintaining stability in the bilateral relationship is paramount. At the same time, it is actively working to diversify its economic partnerships and strengthen its position in global trade networks, enhancing its negotiating leverage while mitigating future vulnerabilities.

This visit, and other high-level visits that are lined up including that of Vice President J.D. Vance and NSA Michael Waltz, serves as a crucial test of how much policy flexibility both sides are willing to exercise and the outcomes will be extremely relevant to track progress. India has already accommodated U.S. concerns in several areas when it comes to trade, yet there is still room as the U.S. is particularly keen on exporting more agricultural goods to India. 

A successful dialogue, and eventually a mutually beneficial deal, could pave the way for a more structured trade framework, reinforcing India’s positioning as a critical partner in Washington’s Indo-Pacific economic strategy and overall strategic calculus.