Trade talks between India and the United States have hit a roadblock. Indian authorities are pushing back against US pressure to allow low-duty imports of American farm products like maize and soybean, as per a report by The Times of India.
According to TOI, Indian officials say the move could hurt Indian farmers and raise health concerns due to the genetically modified (GM) nature of these crops.
The Times of India’s sources confirmed that discussions have stalled as both sides struggle to find middle ground. “Talks have hit a hurdle,” a source familiar with the matter said.
Indian exporters brace for 26 per cent tariff amid stalled negotiations
A US delegation from the Office of the Trade Representative engaged with their Indian counterparts in Delhi from June 5–6. Earlier, officials from both sides were expecting an interim bilateral trade agreement before the July 9 deadline.
With no breakthrough in sight before the end of the 90-day pause, Indian exporters may face a steep 26 per cent tariff on shipments to the US, reports The Times of India. Officials believe the 10 per cent baseline tariff being offered by the Trump administration, applicable to all countries, is not attractive enough for India to sign a limited trade pact.
India seeks zero-duty access, Trump declines
When talks began, India was hoping for duty-free access for several key sectors, including textiles, leather, pharmaceuticals, engineering goods, and auto parts. However, American negotiators have told their Indian counterparts that the Trump administration cannot bring tariffs down to zero right away.
India has also sought protection from future tariff hikes once the deal is signed. This remains a sticking point, with no clear commitment yet from the US side.
Tensions rise as PM Modi rejects Trump’s Operation Sindoor claim
Trade discussions have been further complicated by recent political tensions. There is growing unease in India over US President Donald Trump’s claim that he brokered the pause in Operation Sindoor. Prime Minister Narendra Modi firmly rejected Trump’s assertion during their June 17 phone call, clarifying that the pause in Operation Sindoor occurred at Pakistan’s request following direct military communication—with no US trade mediation or third-party involvement.
India’s External Affairs Ministry reiterated that the country “does and will never accept third-party mediation” in such matters.
This controversy has added to the friction and made it harder to build trust at the negotiating table. Both sides remain in contact to talk about the deal as time is running out for a breakthrough ahead of the July 9 deadline.