India and US Hasten Trade Discussions before July Deadline; Washington Representatives Expected to Visit Delhi Shortly
US and India aim to finalize interim trade agreement amidst ongoing negotiations
Both nations are working towards concluding the initial phase of a comprehensive bilateral trade deal by September-October. However, there is a possibility of an interim agreement being reached sooner. The trade relationship between the US and India continues to be strong.
According to sources cited by PTI, a team of US officials is anticipated to visit India in the upcoming weeks for further discussions on the proposed temporary trade pact between the two countries. This visit holds significant importance as both sides strive to formalize the agreement before the July 9 deadline.
India is pressing for complete exemption from the 26% reciprocal tariff imposed by the US on Indian goods. Though the US has temporarily suspended this tariff until July 9, Indian exports are still subjected to a baseline 10% duty. Negotiations are progressing swiftly, as reported by PTI.
The recent visit of India’s chief negotiator, Rajesh Agrawal, to Washington for detailed talks with his US counterpart has paved the way for the upcoming discussions. Additionally, meetings between Commerce and Industry Minister Piyush Goyal and US Commerce Secretary Howard Lutnick have further strengthened the dialogue.
While US Congress approval is necessary to reduce tariffs below Most Favoured Nation (MFN) levels, the US administration holds the authority to unilaterally remove reciprocal duties imposed on countries like India. Both countries are striving to finalize the initial phase of a broader trade agreement by September-October, with the likelihood of an interim deal being reached sooner, potentially before the July deadline. Trade ties between the US and India remained robust in 2024-25, with the US retaining its position as India’s top trading partner for the fourth consecutive year.
