New Delhi– Ongoing high-level trade talks between India and the United States have been extended into next week as negotiators work to finalize an interim agreement on tariff reductions ahead of a July 9 deadline, a senior official confirmed Friday.
The Indian delegation, led by Additional Secretary Rajesh Agrawal, has held two days of intensive discussions in New Delhi with senior representatives from the Office of the United States Trade Representative (USTR), who arrived for weekend negotiations.
“The two sides are engaged in focused discussions aimed at expanding market access, reducing tariff and non-tariff barriers, and strengthening supply chain resilience and integration,” the official said.
The immediate goal is to secure an interim deal before the July 9 cutoff, marking the end of a 90-day moratorium on new US tariffs targeting Indian exports. The pause was ordered by US President Donald Trump to allow time for negotiations. Talks are expected to continue beyond that date in pursuit of a broader agreement, which could be finalized by September or October.
The latest round of discussions follows Indian Commerce Minister Piyush Goyal’s recent visit to Washington, where he held consultations on bilateral trade priorities.
India has proposed substantial tariff cuts, potentially reducing average duties from 13% to 4%, in return for relief from US tariff hikes imposed during the Trump administration. These proposals mirror concessions made in India’s recent free trade agreement with the United Kingdom.
New Delhi is pressing for greater access for its industrial exports—including steel, aluminum, auto parts, and pharmaceutical products—sectors hit hard by recent US tariff increases. In particular, the doubling of safeguard duties on steel and aluminum imports to 50% has significantly hurt Indian exporters. Although India has challenged the measures at the World Trade Organization, it is seeking a bilateral resolution as part of the ongoing talks.
The United States, meanwhile, is pushing for broader access for its agricultural and dairy products. However, Indian officials have indicated that protecting the livelihoods of small-scale farmers remains a priority, making this a sensitive and potentially contentious area.
India may agree to expanded imports of select agricultural goods, such as almonds, which are already widely imported. In return, it is expected to seek greater US market access for Indian seafood—particularly shrimp and fish—as well as spices, coffee, and rubber. These are areas where Indian exporters are competitive globally but face high US tariffs.
In 2024, bilateral trade between the two nations reached $129 billion, with India recording a $45.7 billion trade surplus. In February, Prime Minister Narendra Modi and President Trump jointly launched “Mission 500,” a bilateral initiative to double trade to $500 billion by 2030.
US Secretary of Commerce Howard Lutnick recently indicated that a trade deal is close to completion, telling attendees at the US-India Strategic Partnership Forum Annual Leadership Summit that a final agreement is expected soon. (Source: IANS)
