Despite optimistic rhetoric from the Trump administration forecasting a “golden age” in US-India relations, the two nations failed to conclude a long-anticipated bilateral trade agreement (BTA) ahead of the April 2 deadline set by former President Trump for implementing reciprocal tariffs.
US Deputy Secretary of State Christopher Landau, barely a week into his new post, held a high-level call with India’s Foreign Secretary Vikram Misri over the weekend, reaffirming Washington’s commitment to strengthening strategic and economic ties. The outreach comes amid continued efforts to finalize the BTA and avoid the broader application of punitive tariffs.
The latest round of negotiations, led by Assistant US Trade Representative Brendan Lynch, saw progress in narrowing gaps but stopped short of sealing a deal. Trump maintained a positive tone, stating, “It’s going to work out very well with India,” even as he criticized India’s high tariff regime—particularly on American agricultural products.
Christopher Landau struck a similarly cordial note, calling India “one of the world’s great civilizations” and expressing hope for deepened cooperation. However, beneath the diplomatic niceties lies friction, especially on the issue of dairy imports—a sticking point that underscores India’s complex mix of economic and cultural sensitivities.
While India has reportedly offered tariff reductions on over $23 billion worth of US imports—including agricultural goods, medical devices, and industrial products—it has remained firm on sensitive sectors like wheat, maize, meat, and particularly dairy. India’s dairy industry, the largest in the world, remains a politically sensitive and highly protected sector. The country’s strict import regulations—such as bans on products from animals fed with ruminant-derived feed—stem not only from health standards but deep-seated religious and cultural norms.
This resistance frustrates US negotiators, especially from states like Wisconsin, where dairy exports are a significant economic and political issue. With an election looming, pressure is mounting on the White House to deliver trade victories. The US has previously secured Indian market openings for almonds, apples, and bourbon—moves that were seen as politically convenient but insufficient in scope.
While further virtual negotiations are expected over the coming weeks, it remains unclear whether the concessions India has offered will be enough to persuade Washington to carve out an exception for New Delhi in its tariff policy. India, for its part, has raised concerns over the US’s handling of deportations and has pushed for more humane enforcement as part of wider diplomatic discussions.
Still, both sides appear committed to a long-term partnership that extends beyond trade—touching on defense, technology, immigration, and regional stability in the Indo-Pacific.
As the clock ticks, all eyes remain on how the dairy issue will shape not only the future of this trade deal but the trajectory of US-India economic relations.