As President Donald Trump’s new tariffs are set to take effect in just two days, India and the United States have agreed to wrap up part of a trade agreement by the end of the year.

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Despite this progress, there has been no word on whether India will be granted any relief from the incoming tariffs. Starting 2 April, Indian exports are likely to be hit by fresh import duties from the US.

Officials from both nations held discussions in New Delhi this week, working on the first stage of a wider trade deal that they hope to finalise by autumn 2025.

Also read: Trump praises Modi as 'very smart,' says tariff talks between us would 'work out very well'

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Aside from that, Washington’s move to apply a 25% tariff on countries that buy oil from Venezuela could hurt India, a long-time importer of Venezuelan crude.

What was discussed?

In a statement released on Saturday night, India’s commerce ministry said both sides had "broadly come to an understanding on the next steps towards a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA), to finalise its first tranche by fall 2025".

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Also read: Canada vows retaliatory trade actions against US auto tariffs

The talks covered ways to "deepen bilateral cooperation in priority areas including increasing market access, reducing tariff and non-tariff barriers and deepening supply chain integration".

Still, there was no indication that either side would act before Tuesday when the new US tariffs are due to start.

According to India Ratings and Research, a credit rating agency, the US tariff hike could cause India’s exports to fall by as much as $7.3 billion in the next financial year.

Also read: Trump's auto tariffs trigger global industry turmoil, threatening higher prices and job losses

India’s efforts to ease tensions

India has recently made some tariff cuts in a bid to smooth things over with Washington. This includes slashing duties on high-end motorbikes and bourbon whiskey.

Ahead of the latest round of talks, Indian media had reported that the government was considering dropping a tax on online services such as digital ads.

There were also suggestions that India might reduce tariffs on products like cars, electronics, and medical equipment to help move the talks forward.

Also read: Era of close Canada-US ties 'over' says PM Carney after Trump's auto tariffs announcement

(With inputs from agencies)