As time runs out before the July 9 tariff deadline, India and the US are wrapping up talks on a limited trade deal confirmed by officials. While the agreement represents a notable advance in India-US ties, the deal is expected to sidestep delicate sectors like dairy, agriculture and genetically modified foods, with negotiation centred on industrial products and market entry.
The agreement is in its final stages. Agriculture-related issues are likely to be addressed later and seem excluded from the current phase, a top India Official said to the Economic Times.
In April, the US President introduced reciprocal tariffs, including a 26% duty on major Indian Exports. While the tariffs were delayed for 90 days during negotiations, Trump cautioned that tariff notifications will begin on July 8 for countries that have not finalised a deal yet.
India, advocating for the full repeal of the 26% tariff, aims for a limited agreement to temporarily defuse the trade risk for the short term.
According to Indian Sources, dairy and agriculture are excluded from the mini pact owing to longstanding sensitivities.
The US is demanding expanded market access for agricultural goods and GM foods, including animal feed sectors, which India strongly rejects. India has set its boundaries, the ball now lies with the US, a senior official stated, highlighting New Delhi’s stance on safeguarding its farm sector and maintaining its GMO-free status.
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Failure to reach a deal could reimpose 26% tariffs on major Indian exports, including auto parts, leather, and consumer products, adding to global trade woes and dampening India’s export outlook.
