As Trump sets August 1 tariff deadline, all eyes are on an interim deal with India and whether duties can stay under the 20% mark
The India-US trade deal remains under intense global scrutiny as the tariff war launched by President Donald Trump edges toward a new deadline. A mini deal may be imminent, but key questions around agriculture, dairy, and tariff ceilings remain unanswered, reported timesofindia.indiatimes.com.
1) Will tariffs go below 20%?
US negotiators are reportedly working toward an interim agreement with India that would lower proposed tariffs to below 20%, down from the initial 26%. This potential concession would give India a competitive edge over regional peers, Bloomberg reported.
2) Indian delegation to visit Washington soon
A team from India’s Commerce Ministry is expected in Washington next week for fresh talks on the interim pact. This follows earlier rounds led by chief negotiator Rajesh Agrawal in June.
3) No Trump tariff letter for India—yet
While Trump has already issued tariff letters to over 20 countries, India has not received one. Insiders suggest this is because both sides are close to announcing a mini-deal before the new August 1 deadline.
4) Trump confirms deal with India is near
Speaking earlier this week, Donald Trump said, “We’re close to making a deal with India,” referencing ongoing negotiations with several nations amid broader tariff adjustments.
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Amid extended deadlines and geopolitical pressure, India and the US are closing in on an interim trade deal
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But the fate of tariffs, red lines, and sector-specific concessions will determine how far both sides are willing to bend
5) India won’t be rushed
Commerce Minister Piyush Goyal clarified that India does not operate on deadlines. “Deals are only signed when they are in the national interest and provide mutual benefit,” he reiterated last week.
6) Key sticking points: Agriculture and GM food
India has consistently refused to grant duty concessions on sensitive products like agricultural goods and dairy. India also maintains a ban on GM crops, which clashes with US arming practices.
7) India draws the line
Sources confirmed India has established “red lines” in current negotiations—particularly in agriculture, dairy, and tariff protections. “The ball is now in the US court,” they said.
8) Trump’s BRICS tariff warning
Adding uncertainty, Trump recently warned of an extra 10% tariff on countries aligning with BRICS. India, as a BRICS member, could be impacted—though no specific action has been announced yet.
9) Only an interim trade deal likely for now
Reports suggest any announcement before August 1 will be limited in scope, with controversial issues like dairy and agriculture excluded from the first-phase agreement.
10) WTO tension simmers beneath negotiations
Parallel to trade talks, the US has raised concerns at the WTO over India’s dairy certification norms. India, meanwhile, has asserted its right to retaliate on auto and metal tariffs under WTO rules.
An Indian official confirmed these WTO steps are standard safeguard procedures and won’t derail the ongoing trade negotiations.
