A team of US officials is expected to visit India in the coming weeks for the next round of negotiations on the proposed interim trade agreement between the two countries, according to sources cited by PTI. The visit comes at a critical juncture as both sides push to finalise the deal before the July 9 deadline.
India is seeking full exemption from the 26 per cent reciprocal tariff imposed by the US on domestic goods. Although the US suspended the tariff for 90 days until July 9, Indian exports are still subject to a baseline 10% duty.
“Negotiations are moving at a faster pace,” PTI reported. The US delegation’s visit is expected to build on momentum generated during recent high-level meetings in Washington.
India’s chief negotiator, Rajesh Agrawal, Special Secretary in the Department of Commerce, recently concluded a four-day trip to Washington, where he held detailed talks with his US counterpart. Additionally, Commerce and Industry Minister Piyush Goyal met with US Commerce Secretary Howard Lutnick twice last week to bolster the discussions.
While approval from the US Congress is required to lower tariffs below Most Favoured Nation (MFN) levels, the US administration can unilaterally lift the reciprocal duties imposed on countries like India.
Both nations are aiming to conclude the first phase of a broader bilateral trade pact by September-October. However, an interim deal could be sealed sooner, possibly before the July deadline.
Trade relations between the two nations remain robust. In 2024-25, the US continued to be India’s largest trading partner for the fourth consecutive year, with total trade valued at $131.84 billion. The US accounted for 18% of India’s exports and 6.22% of its imports, resulting in a goods trade surplus of $41.18 billion in favour of India.