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Intense talks continue to reach interim India-US trade deal ahead of deadline

IANS
Updated: July 3rd, 2025, 13:08 IST
in Business, Home News, International
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India, US

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New Delhi/Washington: As the US reciprocal tariffs deadline looms, hectic parleys are currently underway in Washington, DC, between officials of India and the US on finalising the proposed interim trade deal in the next couple of days.

While New Delhi is seeking greater market access for its labour-intensive goods such as garments, footwear, and leather — which are major job creators — Washington wants duty concessions for its agricultural and daily products, according to officials.

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The Indian trade negotiators have extended their stay in US, signalling a last-minute push to iron out key differences. They have maintained that broader tariff cuts, especially on high-employment goods, are needed to reach the goal of doubling bilateral trade to $500 billion by 2030.

The focus of the India-US interim trade deal has narrowed down to reciprocal tariff reductions or removals. India’s negotiating team, led by Special Secretary Rajesh Agarwal, is engaged in high-level talks in Washington to conclude the bilateral trade agreement.

Indian and US negotiators are aiming to finalise an interim trade deal ahead of the July 9 deadline that has been fixed by US President Donald Trump for the 90-day pause on new tariffs that were to be levied on Indian products. Negotiations are expected to continue after that for a bigger trade deal to be signed in September-October.

However, as a quid pro quo, India is likely to press for improved access to the US market for seafood products like shrimp and fish, as well as spices, coffee, and rubber- segments where Indian exporters are globally competitive but face tariff competition in the American market, according to earlier reports.

India has already started buying more oil and gas from the US to reduce the trade surplus and has offered to increase these purchases. India has proposed significant tariff reductions, potentially lowering average duties from 13 per cent to 4 per cent, in exchange for exemptions from US tariff hikes imposed during the Trump administration.

IANS

Tags: Donald TrumpIndia-US trade dealUS tariffWashington
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