India and the United States are likely to finalise a mini trade deal within the next 48 hours. The announcement may come just before the July 9 deadline set by US President Donald Trump for new tariffs. This deadline also marks the end of a 90-day pause on Trump-era duties that impact several countries, including India.
According to reports, talks between the two countries have already been completed. Officials say both sides have agreed on main points of the deal, which is expected to boost trade in key sectors. India has pushed for its final terms that protect its domestic industries while improving access to the US market. Sectors like textiles and leather, which employ large numbers of workers, are likely to benefit.
While India has shared its final offer, the next move now depends on the United States. If approved, this deal would mark a step forward in trade ties between the two countries.
India Sets Clear Terms as Trade Deal with US Nears Deadline
India has made its position clear in ongoing talks with the United States for an interim trade deal. The government has set firm limits, especially in sensitive areas like agriculture and dairy. “India has drawn its red lines… now the ball is in the US court,” a PTI report said citing sources.
Back in February, India and the US began working on the Bilateral Trade Agreement and planned to complete the first phase by around September or October. As a step toward that goal, both sides are currently focusing on a smaller, short-term trade deal.
Earlier, on April 2, the US had announced an extra 26% tariff on Indian goods. This was temporarily paused for 90 days. However, the standard 10% tariff on Indian products still remains. India is asking for full removal of the 26% duty, warning that if a deal isn’t reached in time, the higher tariffs may return, the PTI report said.
Commerce Minister Piyush Goyal recently said that India isn’t rushing into any trade agreement just to meet a deadline. He said India will only sign a deal if it is fully ready and supports the country’s interests. According to him, trade pacts should benefit both countries equally, and national interest should always come first.
Key Points on India-US Trade Deal and Trump Tariffs
- Indian officials have returned from Washington after talks on a short-term (interim) trade deal with the US.
- Some issues are still unresolved, especially US tariffs on Indian steel (50%) and automobiles (25%).
- India has refused to reduce import duties on American farm and dairy products, calling them sensitive sectors.
- India has always protected its dairy industry in past trade deals and is continuing that policy.
- The US, under President Donald Trump, has sent letters to 10–12 countries about adjusting reciprocal tariff rates.
- The US plans to finalise these talks by July 9, ahead of a tariff deadline.
- Trump has not revealed which countries are part of these discussions.
- If no agreement is reached, the US plans to start applying new tariffs from August 1.
- The US wants India to cut duties on industrial goods, electric vehicles, wines, petrochemicals, dairy and farm products like apples, nuts, and alfalfa hay.
- India is considering giving tariff relief mainly to labour-intensive sectors such as clothing, textiles, jewellery, leather, plastics, chemicals, oil seeds, shrimp, and fruits and vegetables.