News Brief
India, US Push For Interim Trade Deal Before 9 July As Trump's Tariff Deadline Looms
India-USA Trade (Representative Image)
India and the United States remain in active negotiations to finalise an interim trade agreement ahead of the 9 July deadline, failure of which could trigger the reinstatement of steep reciprocal tariffs imposed by Washington, PTI reported.
On 2 April, the United States announced a 26 per cent additional tariff on Indian goods, although this was suspended for 90 days by the Trump administration. The suspension expires on 9 July.
“We are very keen, we are engaged, we are trying. Both sides are trying, but both sides have to be happy,” one source familiar with the matter was quoted as saying by PTI.
India is lobbying for a complete exemption from the additional 26 per cent tariff, while the US continues to maintain a 10 per cent baseline levy.
Negotiators are grappling with several sensitive areas, with agriculture and dairy remaining particularly “difficult and challenging” for India. “India has not opened up dairy in any of its free trade pacts,” a source pointed out.
Meanwhile, India is pressing for tariff concessions in labour-intensive sectors such as textiles, gems and jewellery, leather, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
If no extension is granted, the 26 per cent tariff could be reinstated, potentially impacting trade flows on both sides.
Sources acknowledged that India may gain in something and may lose some compared to other countries, but added that the US too would face consequences from the elevated duties.
The next phase of discussions may involve a visit by the Indian delegation to Washington, with the aim of concluding the first phase of the deal by autumn.
