As the July 9 deadline approaches, the United States and India are working intensively to finalize a bilateral trade agreement aimed at creating a fair and mutually beneficial relationship. According to US State Department Deputy Spokesperson Mignon Houston, India is a key strategic ally for Washington in the Indo-Pacific, particularly within the Quad alliance.
In an interview with ANI, Houston emphasized that the Trump administration’s “America First” agenda seeks trade arrangements that are balanced and reciprocal, especially with significant partners like India. “India plays an essential role in our Indo-Pacific vision, and our policies are centered around ensuring mutual benefits in every trade partnership,” she said.
Houston also defended the administration’s approach to imposing tariffs, noting that unfair global trade practices have taken a toll on American farmers and industries. She added that tariffs are intended to bring trading partners to a point of fair engagement.
Talks for a Bilateral Trade Agreement (BTA) between the two nations are ongoing in Washington, led on the Indian side by Chief Negotiator Rajesh Agrawal. The original two-day dialogue has now been extended, reflecting the urgency and complexity of the discussions. A key point of contention remains agricultural trade, where India is taking a firm stance.
President Donald Trump recently expressed optimism about reaching a deal with India, indicating it would open up new opportunities for American businesses and likely lead to lower tariffs. “India currently restricts access, but I believe they are ready to change that,” Trump said. “If they do, we’ll have a deal that benefits both nations with fewer tariffs.”
However, time is running out. If no agreement is reached by July 9, a previously suspended 26% tariff structure will automatically be reinstated, impacting key exports between the two countries. The tariffs, originally introduced under the Trump administration on April 2, were paused for 90 days to allow room for negotiations.
With both nations recognizing the economic and strategic importance of their partnership, hopes remain high that a middle ground will be reached in the coming days.