<h3>Overview</h3>
<p>On <strong>June 3, 2026</strong>, <strong>Sergio Gor</strong>, the United States envoy to India, said that the remaining “one‑per‑cent” issue in the India‑U.S. trade pact is being resolved and that the agreement could be signed within a few weeks. The talks are being conducted by senior trade officials from both sides in New Delhi.</p>
<h3>Key Developments</h3>
<ul>
<li>The U.S. trade team, led by <span class="key-term" data-definition="Chief negotiator — senior official leading trade talks on behalf of a country (GS2: Polity)">Chief Negotiator</span> <strong>Brendan Lynch</strong>, is in India for final‑round negotiations.</li>
<li>India’s counterpart is <span class="key-term" data-definition="Additional Secretary, Department of Commerce — senior Indian bureaucrat responsible for trade policy (GS2: Polity)">Darpan Jain</span>, an <span class="key-term" data-definition="Department of Commerce — Indian ministry that formulates and implements trade policy (GS2: Polity)">Additional Secretary</span> in the <span class="key-term" data-definition="Department of Commerce — Indian ministry that formulates and implements trade policy (GS2: Polity)">Department of Commerce</span>.</li>
<li>The framework for the interim trade agreement was agreed in February 2026; the current talks aim to clear the last 1 % of pending issues.</li>
<li>The United States recently announced findings of a <span class="key-term" data-definition="Forced labour investigation — USTR probe into products made with forced labour, leading to possible tariffs (GS3: Economy)">forced labour investigation</span> under <span class="key-term" data-definition="Section 301 — US law that allows the Trade Representative to investigate and impose tariffs on unfair trade practices (GS3: Economy)">Section 301</span>, proposing additional <span class="key-term" data-definition="Tariff — tax on imported goods, used to protect domestic industries or penalize unfair practices (GS3: Economy)">tariffs</span> on imports from 60 economies.</li>
<li>According to Gor, the new tariffs are <strong>global</strong> and <strong>not targeted at India</strong>, affecting countries from the EU to Japan and South Korea.</li>
</ul>
<h3>Important Facts</h3>
<ul>
<li>Negotiations began on <strong>June 2, 2026</strong> with a three‑day round of talks in New Delhi.</li>
<li>The “one‑per‑cent” sticking point refers to a minor clause that, once resolved, will allow the interim pact to become legally binding.</li>
<li>The USTR’s <span class="key-term" data-definition="U.S. Trade Representative (USTR) — US government agency that formulates trade policy, conducts investigations and negotiates trade agreements (GS3: Economy)">USTR</span> launched two separate investigations on <strong>March 11‑12, 2026</strong>, covering 60 economies for alleged forced labour and excess industrial capacity.</li>
<li>Proposed tariffs will be applied uniformly, meaning Indian exporters will not face a separate duty increase.</