The United States and India are "very, very close" to finalizing a bilateral trade deal, with U.S. Deputy Secretary of State Christopher Landau stating Tuesday that only "one last hurdle" remains. Landau made the remarks on the sidelines of the SelectUSA Investment Summit in Maryland, underscoring the urgency of concluding negotiations that have spanned months.

The framework for the agreement was announced on February 2, with the full text released on February 7. Under the proposed terms, the U.S. would cut tariffs on Indian goods from 50% to 18% and eliminate a 25% duty linked to India's purchase of Russian oil. India has been seeking preferential market access as both nations aim to reach $500 billion in bilateral trade by 2030.

However, on February 20, the U.S. Supreme Court invalidated President Trump's authority to impose reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA), disrupting the legal basis for parts of the deal. In response, Indian negotiators are now working to redraft the agreement to protect its interests under the revised U.S. tariff framework.

Landau, who recently visited India, stressed the strategic importance of the country, citing its economic potential and global role. He emphasized the need to finalize the deal to advance other bilateral priorities. Indian officials were in the U.S. last month for follow-up talks.

Officials from both sides continue consultations to align the agreement with the post-ruling trade environment. The next round of negotiations is expected to focus on alternative mechanisms to deliver promised tariff benefits, with no official timeline yet announced for a final signing.