The Economic Survey 2025-26 says ongoing trade talks between India and the United States are likely to end this year. This could reduce external uncertainties facing India. The report notes global challenges like slower growth in major trading partners, tariff-related trade disruptions, and volatile capital flows may affect exports and investor confidence. Since March last year, India and the US have held six rounds of negotiations. These talks have progressed slowly because the US imposed steep tariffs on Indian goods starting August last year. The Trump administration applied a 50% tariff in total, including a 25% tariff plus an additional 25% penalty due to India's purchase of Russian crude oil. In December 2025, a US delegation led by Deputy Trade Representative Ambassador Rick Switzer visited New Delhi for talks. This was their second trip after the tariff imposition. The Economic Survey highlighted that resolving these talks during the year would help lower external risks for India and support economic stability.