US–India Trade Deal: Phase-One Washington Talks Target Tariff Rollback & H-1B Fees — Latest Update
- 25th September 2025
- 04:00 PM
- 2 min read
Summary
Talks have re‑accelerated. A senior Indian official told ANI discussions are “happening at different levels,” while the MEA called the Sept 16 Delhi round “positive and forward‑looking” and vowed to “intensify efforts.” In Washington, Piyush Goyal is pushing a phase‑one package: tariff rollback (up to 50% duties), H‑1B fee cushions, and targeted access. Michael Kugelman told ANI a deal now would be a “confidence‑building measure,” but warned the H‑1B spike could hit the tech corridor.Mumbai | September 25
What we know so far
- Talks re-accelerated: a senior Indian official told ANI negotiations are “happening at different levels,” with the ministerial team due back this week.
- Delhi round (Sept 16): Rajesh Agrawal met the U.S. side led by Brendan Lynch; MEA termed the talks “positive and forward-looking” and said both sides will “intensify efforts.”
- Washington push: Piyush Goyal is in Washington to land a phase-one agreement.
- India’s asks: rollback of punitive duties aligned with energy security; predictable rules for services and talent mobility.
- US. asks: wider market access (agri/manufacturing), clearer tech/data guardrails, measurable enforcement.
- South Asia analyst Michael Kugelman says a deal would be a “confidence-building measure,” but warns the H-1B fee jump could be a “pretty significant blow” if unaddressed as reported ANI
- Timeline: BTA track began Feb 2025; five rounds completed; phase one was eyed for Oct–Nov 2025
Why the talks matter
A phase-one India–US trade deal that tempers tariff risk and stabilizes services mobility would restore pricing visibility for exporters and importers, support supply-chain capex in electronics, pharma and auto components, and give boardrooms clearer hiring and investment timelines as both sides target a longer-term roadmap toward $500 bn in trade by 2030.
Phase‑one shape
Negotiators are converging on a lean, time‑bound package: sequenced tariff rollback/waivers; transitional cushions around H‑1B fees to keep tech and healthcare staffing viable; and targeted market‑access/facilitation with timelines and safeguards for MSMEs and food security.
“If we do get a trade deal, that would be a big confidence‑building measure, would restore some trust… and reduce one of the biggest tension points—the very high U.S. tariffs imposed on India,” Michael Kugelman told ANI. He cautioned that the H‑1B fee spike could be a “pretty significant blow” to the tech corridor if not addressed.
What to watch next
- Tariff sequencing: which lines roll back, by how much, and when.
- Mobility cushions: any phasing/offsets that blunt the H-1B fee shock.
- Scope & timing: a lean phase one (tariffs + mobility + timelines) now, with deeper issues widened in 2026; ministerial readouts on Goyal’s return.
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