Intense Negotiations Underway to Finalise Interim India-US Trade Deal Ahead of Deadline

New Delhi/Washington — With the deadline for US reciprocal tariffs fast approaching, intense negotiations are underway in Washington, DC, as officials from India and the United States work to finalise an interim trade agreement within the next few days.

According to officials, India is pushing for enhanced market access for its labour-intensive sectors such as garments, footwear, and leather — industries crucial for job creation. In return, the US is seeking tariff concessions on agricultural and dairy products.

India’s trade negotiators, led by Special Secretary Rajesh Agarwal, have extended their stay in Washington, signalling a determined, last-minute effort to resolve pending issues. New Delhi has stressed that broader tariff reductions, particularly for goods linked to high employment, are essential to achieving the ambitious goal of doubling bilateral trade to $500 billion by 2030.

The core of the proposed interim trade agreement now revolves around mutual tariff cuts or eliminations. Both sides are engaged in high-level discussions to conclude the deal ahead of the July 9 deadline set by US President Donald Trump, marking the end of a 90-day pause on the imposition of new US tariffs on Indian goods. Talks for a more comprehensive trade pact are expected to continue after this, with hopes of signing a full agreement between September and October.

As part of the negotiations, India is also expected to seek better market access for seafood products such as shrimp and fish, along with spices, coffee, and rubber — sectors where Indian exporters are globally competitive but face tariff barriers in the US market.

In an effort to address the trade imbalance, India has already increased imports of oil and gas from the US and has indicated a willingness to further ramp up these purchases. Reports suggest that India has proposed significant tariff reductions — potentially lowering average duties from 13 per cent to 4 per cent — in exchange for relief from US tariff hikes introduced during the Trump administration.

With inputs from IANS