International Desk – US President Donald Trump has said that a new trade deal between the US and India is on the way — and it will likely include much lower tariffs.
Speaking on July 1, Trump told reporters, “I think we are going to have a deal with India… a deal where we are able to go in and compete.” He added that right now, India is very restrictive, but talks are moving in a positive direction.
What’s Happening?
- The US and India are working hard to finalize a Bilateral Trade Agreement (BTA) before a July 9 deadline.
- This deadline marks the end of a 90-day pause on higher tariffs between both countries.
- If the deal is not signed by then, a 26% tariff — paused earlier — could come back into effect.
What’s the Problem?
- The two countries disagree on agricultural products.
- India is not ready to open its dairy sector to foreign players and is cautious about allowing genetically modified crops.
- On the other hand, the US wants lower import duties on things like apples, tree nuts, and GM crops.
What Does India Want?
India is asking for better access to US markets for:
- Textiles and garments
- Jewellery and leather goods
- Agricultural items like shrimp, grapes, bananas, and oilseeds
India’s negotiation team, led by Rajesh Agrawal, has extended its stay in Washington as discussions continue. Two rounds of talks scheduled for July 3 and 4 have been extended to try and reach a deal before time runs out. If successful, the trade deal could more than double US-India trade, growing from $191 billion now to $500 billion by 2030.
