Washington/New Delhi: India and the United States are set to announce a much-awaited interim trade deal by July 8, sources have confirmed. The breakthrough comes after both sides agreed on all terms during high-level talks in Washington.
An Indian delegation, led by chief negotiator Rajesh Agrawal, has been in the US capital finalising the deal. Agrawal serves as Special Secretary in India’s Department of Commerce.
The announcement is expected just before a key deadline. US President Donald Trump had set July 9 as the final date to impose reciprocal tariffs on countries that he said were unfairly taxing US goods.
On April 2, Trump had announced a temporary suspension of 26% tariffs on Indian goods, which will expire on July 9. A 10% baseline tariff still applies. India has been pressing for a complete exemption from the additional duties.
The interim deal is seen as a stepping stone to a larger Bilateral Trade Agreement (BTA), which both countries hope to finalise by October 2025.
Trump recently called for eliminating all trade barriers with India. Speaking to Fox News, he described existing barriers as “unthinkable”, and stressed that the US would not extend the tariff deadline.
The deal will cover several key sectors. These include agriculture, automobiles, industrial goods, and labour-intensive products.
Talks on agriculture and dairy remain tough. India has never opened its dairy sector in any of its previous free trade agreements. The US is demanding lower duties on electric vehicles, petrochemical products, wine, apples, tree nuts, and genetically modified crops.
India, in return, is seeking better access for its labour-driven exports. These include textiles, gems and jewellery, leather, garments, chemicals, plastics, shrimp, bananas, grapes, and oil seeds.
Both countries are now moving toward finalising the interim pact within days, potentially reshaping trade ties between the world’s largest democracies.
