‘In its conclusion phase…’: India-US mini trade deal coming soon? These sectors may be excluded as Donald Trump’s tariff deadline nears
India-US trade deal: India and the United States are close to finalising a limited trade agreement, with officials confirming that sensitive sectors like dairy and agriculture are expected to be left out of the current arrangement.Intense discussions are underway between both countries to finalise a mini trade deal before the Donald Trump administration’s 90-day reciprocal tariff suspension concludes on July 9. In April, the United States President Donald Trump declared matching tariffs for most US trading partners, calculated on their trade surpluses with America, incorporating a 26% duty on India.Also Read | ‘India has drawn its red lines…’: Ahead of Donald Trump’s tariff deadline, officials say ‘ball in US court’ on trade deal; here’s what’s happeningThe Indian government seeks complete withdrawal of the 26% tariff, whilst America demands broader market entry across industries, including agricultural and dairy sectors, along with permission to export genetically modified crops to India.
India-US Mini Trade Deal Soon?
“The deal is in its conclusion phase,” said an official. “Most issues related to agri may be discussed later. As of now, they seem to be out of the ambit of this phase of the deal,” the official told ET, adding that the agreement could be announced in the next two days.A second official confirmed that the mini trade deal would specifically address trade in goods. The source told the financial daily that both countries might proceed with additional agreements in future as various matters reach resolution.India aims to secure enhanced market opportunities in the US for its workforce-driven sectors, particularly textiles and electronics. The US, in turn, seeks permission to export genetically modified (GM) crops and cattle feed to India, which remains a delicate matter for the Indian government.Also Read | ‘Take it or leave it’: Donald Trump says US tariff letters ready for 12 countries ahead of July 9 deadline; will be sent out from…These aspects present significant hurdles for India, considering that domestic agriculturists predominantly practise subsistence farming on modest plots of land. The US administration, however, maintains its stance against reducing duties below the 10% threshold.Trump has indicated that his government would dispatch letters to individual nations failing to reach an agreement with the United States by July 9, detailing the duties they would need to pay for American-bound exports. Should negotiations collapse or the July 9 deadline remain unchanged, India would face tariffs reverting to the April 2 rate of 26%.
