Delegations accelerate talks to secure agreement before suspended US tariff on Indian goods resumes on July 9
India and the United States are moving closer to signing an interim trade agreement by June 25, as both sides push to conclude the first phase of their long-awaited bilateral trade agreement (BTA) before a crucial tariff deadline. The US had imposed a 26 per cent reciprocal tariff on Indian products starting April 2, which remains temporarily suspended until July 9. Indian exports currently face the standard 10 per cent US tariff rate, reported timesofindia.indiatimes.com.
Interim trade pact expected soon as high-level talks intensify in New Delhi and Washington.
The ongoing negotiations are aimed at creating a foundational framework for trade cooperation while resolving key tariff issues. According to official sources, “talks are moving” and “things are on track” for a June-end agreement.
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Special Secretary Rajesh Agrawal, India’s lead trade negotiator, recently completed a four-day diplomatic mission to Washington, where he held strategic discussions with US officials
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Earlier, Commerce and Industry Minister Piyush Goyal met US Commerce Secretary Howard Lutnick to further the talks.
India seeks duty relief; US eyes access in key sectors.
India is lobbying for complete relief from the suspended 26 per cent duty, particularly for labour-intensive sectors such as textiles, gems and jewellery, leather, plastics, chemicals, shrimp, bananas and grapes. The US, in return, is pushing for lower Indian tariffs on industrial products, automobiles (notably electric vehicles), dairy items, wines, petrochemicals, and genetically modified (GM) crops.
While India remains cautious about GM imports due to regulatory norms, it is open to permitting non-GM agricultural products like Alpha alpha hay, used as cattle feed.
India-US trade hits $131.84 billion; target set at $500 billion by 2030.
The United States retained its position as India’s largest trading partner for the fourth consecutive year in 2024-25. Bilateral trade stood at $131.84 billion, with the US accounting for 18 per cent of India’s exports and over 10 per cent of its total trade. India maintained a goods trade surplus of $41.18 billion with the US, a figure that has consistently risen over recent years. However, Washington remains concerned about the widening trade imbalance.
Both nations have now set an ambitious goal of scaling bilateral trade to $500 billion by 2030. A recent finance ministry report suggests that a timely trade deal could unlock new export opportunities, improve market access, and reshape trade dynamics to mutual benefit.
