U.S. Trade Representative Jamieson Greer stated on Thursday that while trade negotiations with India are ongoing, a formal agreement is not expected in the near future. His remarks followed a recent phone call between President Donald Trump and Indian Prime Minister Narendra Modi, which Modi described as productive, though Trump gave no further details. Greer indicated that the parties have identified key sticking points but have yet to resolve them.

Indian Commerce Minister Piyush Goyal, who has been leading talks in the U.S. and attending the G20 trade ministerial in Milwaukee, expressed optimism about reaching an interim deal under the India-U.S. Bilateral Trade Agreement. However, experts highlighted a divergence in views, with Goyal focusing on progress made and Greer emphasizing remaining challenges. The talks face difficulties over sensitive issues such as India’s continued purchase of Russian oil and New Delhi’s desire to safeguard protections for its agricultural sector.

The U.S. remains concerned that India’s oil imports from Russia provide funding for the Ukraine conflict, a point of contention that has strained relations for over a year. Washington has responded with punitive tariffs against Indian goods, raising duties up to 50% last year before reducing them to 18% earlier this year amid claims of India agreeing to reduce Russian oil dependence. India maintains its purchases are driven solely by energy security, and global supply constraints due to the Iran war limit its alternatives.

Currently, Indian exports to the U.S. face a 10% tariff following investigations related to forced labor practices. While significant portions of India’s pharmaceuticals and smartphone exports are exempt, tariffs and disagreements over energy and agriculture continue to hinder progress. Analysts caution that trade complementarities may be reaching their limits, and neither side seems ready to concede on major differences, complicating hopes for a swift trade deal.