India, US race to seal trade deal by 8 July: report

With less than two months remaining until the Trump administration’s 8 July deadline for the suspension of tariffs on Indian goods, India and the US are close to concluding a long-pending bilateral trade agreement, Mint reported.

Commerce and industry minister Piyush Goyal along with India’s chief trade negotiator Rajesh Agrawal are part of the delegation scheduled to travel to Washington for direct talks, according to the business daily. Some officials will reportedly leave on Thursday, while others will depart on Friday.

The talks have progressed substantially, and both sides are looking to conclude the agreement well ahead of the deadline, two Indian government officials told Mint.

The Trump administration’s 90-day pause on the proposed reciprocal tariffs on Indian goods has pushed both sides for a deal that could smoothen their trade relationship and avoid retaliatory tariffs.

US President Donald Trump, on 2 April, had announced steep tariffs on imports from nearly 60 countries, including a 26% duty on Indian goods in sectors such as steel and aluminium.

However, his administration granted a temporary pause on 10 April for Indian exports to allow the two countries time for discussions.

The report comes as Trump, speaking during his Qatar visit on Thursday, told media that India offered a “basically zero tariff” deal on US goods, and called India’s previous tariff structure as restrictive to US companies.

However, Indian officials have reportedly rejected Trump’s claim.

The officials told Mint that negotiations are focused on national interests.

The US is seeking more market access, while India has is looking to prioritize protecting its sensitive sectors such as dairy and agriculture.

Trump has threatened a host of countries, including India, with reciprocal tariffs for what he claimed were response to high duties set by other nations on US goods.

The move set off a global trade disruption, with Trump maintaining that reciprocal tariffs will aid in US manufacturing and generate jobs.

On Thursday, Trump also said he told Apple chief executive officer (CEO) Tim Cook against expanding manufacturing operations in India for US-bound products. However, Indian officials told Press Trust of India that Apple’s plans remain unchanged.

Meanwhile, India has also taken steps to maintain its position, by submitting a notice to the World Trade Organization reserving the right to respond to non-tariff barriers. However, officials reportedly clarified this move is unrelated to the bilateral trade talks.

The US remains India’s largest trading partner, with bilateral trade reaching $129 billion in 2024, and India having a $45.7 billion trade surplus.