Intense Negotiations Between India and US Ahead of Tariff Deadline

Trade Talks Intensify in Washington

New Delhi/Washington, July 3: As the deadline for reciprocal tariffs approaches, discussions are intensifying in Washington, DC, where Indian and US officials are working to finalize a proposed interim trade agreement within the next few days.

India is advocating for enhanced market access for its labor-intensive products, including garments, footwear, and leather, which are crucial for job creation. Meanwhile, the US is seeking duty reductions on its agricultural and dairy items, as reported by officials.

Indian trade representatives have extended their stay in the US, indicating a last-minute effort to resolve significant differences. They argue that broader tariff reductions, particularly on goods that generate employment, are essential to achieve the ambitious target of doubling bilateral trade to $500 billion by 2030.

The negotiations for the interim trade deal have become focused on reciprocal tariff reductions or eliminations. The Indian delegation, led by Special Secretary Rajesh Agarwal, is engaged in high-level discussions in Washington to finalize the bilateral agreement.

Both Indian and US negotiators are aiming to conclude an interim trade deal before the July 9 deadline set by US President Donald Trump, which marks the end of a 90-day pause on new tariffs that were to be imposed on Indian goods. Further negotiations are anticipated to continue for a more comprehensive trade agreement, expected to be signed in September or October.

In exchange, India is likely to advocate for better access to the US market for seafood products such as shrimp and fish, along with spices, coffee, and rubber—areas where Indian exporters are competitive but face tariff challenges in the US market, according to previous reports.

India has already increased its purchases of oil and gas from the US to mitigate the trade surplus and has expressed willingness to further boost these imports. The country has proposed substantial tariff cuts, potentially reducing average duties from 13% to 4%, in return for exemptions from the tariff increases imposed during the Trump administration.