Intense Talks Continue to Reach Interim India-US Trade Deal Ahead of Deadline
As the July 9 deadline for the pause on new US tariffs draws closer, Indian and American trade negotiators are engaged in intense last-minute discussions in Washington, DC, to finalise a long-pending interim trade agreement.
Officials from both sides confirmed that efforts are underway to resolve the remaining differences, with the focus on reciprocal tariff cuts and improved market access in key sectors.
India is seeking better access for labour-intensive exports such as garments, footwear, leather goods, spices, and seafood — sectors that generate significant employment. In return, the US is pushing for tariff concessions on its agricultural and dairy products, where it faces barriers to entry in the Indian market.
Led by Special Secretary Rajesh Agarwal, India’s trade team has extended its stay in the US capital, indicating the importance of closing the deal within the stipulated timeline. The proposed agreement is part of a broader roadmap to double bilateral trade between the two countries to $500 billion by 2030.
Negotiations have narrowed down to the structure and scale of reciprocal tariff reductions. India has reportedly offered to lower average duties from 13 per cent to around 4 per cent on select US imports, in exchange for lifting certain trade restrictions and tariff hikes introduced during the Trump administration.
Indian officials are also lobbying for preferential treatment for seafood products such as shrimp and fish, which are globally competitive but face high tariffs in the US. Additionally, India is looking to gain better access for items like spices, coffee, and rubber.
In a gesture of goodwill and to address Washington’s concerns about trade imbalance, India has increased purchases of US oil and natural gas.
The interim trade deal, if concluded, is expected to be followed by negotiations for a broader, more comprehensive trade agreement in the coming months, with a possible signing in September or October.
The outcome of this round of negotiations is being closely watched by industry stakeholders and global markets, as it could mark a significant step forward in India-US economic relations.
