India will not launch the long‑awaited trade agreement with the United States until it secures tariffs lower than those of competing countries. Bloomberg, citing Commerce and Industry Minister Piyush Goyal, reports that all diplomatic optimism is now negated by unresolved financial issues.

According to ANI, the Indian side categorically refuses to implement the pact without a competitive tariff advantage. At a briefing, Piyush Goyal said bluntly that Indian tariffs must be lower than those of competitors. He added that once this issue is settled, the agreement will come into force immediately.

The minister recalled that the basic framework of the deal was agreed before the US Supreme Court’s February decision that found former President Donald Trump’s previous tariff policy unlawful. Goyal’s remarks came just weeks after Narendra Modi and Donald Trump met on the sidelines of the G7 summit in France. Both leaders radiated confidence, and the US president said Washington and New Delhi were a step away from signing.

In practice, talks have dragged on. The process is being held up by sharp disagreements over market access and protection for politically vulnerable sectors. Beyond preferential tariffs, India is seeking ironclad guarantees from Washington against future trade investigations and sudden protective measures. Negotiators are now fully focused on ironing out these details, without which a deal to expand trade and diversify supply chains will remain on the table.