India, U.S. Push Toward Interim Tariff Deal Amid Deadline Pressure

Indian and U.S. trade negotiators are working to complete an interim tariff-cutting agreement before President Donald Trump’s July 9 deadline, according to sources who have knowledge of the negotiations. The United States delegation which included senior officials from the Office of the United States Trade Representative met with Indian counterparts in New Delhi on Thursday to negotiate reductions in agricultural and automotive sectors.

The two-day private meetings led by chief negotiator Rajesh Agrawal on the Indian side may produce a statement by Sunday and a formal announcement by month’s end according to a second official. The Indian Trade Minister Piyush Goyal who is currently in Italy plans to return and join the last efforts of the negotiations.

The official who wished to remain anonymous stated that India will provide better terms than the UK agreement through a 10% average tariff reduction to match the U.S. base rate and quota-based zero-duty arrangements.

The agreement’s deadline approaches while India maintains its opposition to farm and dairy market liberalization because of anticipated negative reactions from rural areas. The agreement serves as a key element to reach $500 billion in bilateral trade by 2030 while India implements its UK trade pact and continues EU trade negotiations.

U.S. Commerce Secretary Howard Lutnick announced on Monday that the negotiations were advancing positively toward a quick resolution. The two countries seem likely to establish a trade agreement which will meet both market access requirements and political challenges of election-year trade negotiations.