India-US Trade Deal: New Delhi draws red lines as Trump’s tariff clock ticks, deadline on…, What’s next for trade deal?

India-US Trade Deal: As the tariff clock ticks and the deadline approaches on July 9, India has made its stance clear by drawing red lines over a mini trade deal. Indian officials stated that the ball is now in the United States’ court, as the decision on the interim trade deal rests with the White House. News agency PTI reported, citing sources, that if the issues are resolved, the interim trade deal might be announced before the deadline — July 9 — which marks the end of the 90-day suspension of Trump-era tariffs announced on April 2. These tariffs affect several countries across the world, including India.

India-US Trade Deal: Why India Draws Red Lines?

Amid the talks and negotiations for the proposed interim trade deal, the New Delhi has cleared its stance by setting firm boundaries on crucial sectors such as agriculture and dairy. India and the US held a discussion for bilateral trade agreement (BTA) in February this year and decided to finish the first phase by September-October.

After a 90-day suspension of a 26percent retaliatory tariff on Indian goods, the US continues to impose its standard 10percent tariff on those same products.

India-US Trade Deal: What Does India Seek?

New Delhi is looking for a complete exemption from the 26 percent tariff levied by the US. Sources told PTI that if the trade talks fail, the 26 percent tariff will be implemented again.

Commerce Minister Piyush Goyal recently stated that India will not rush into a trade deal with the US. The deal will only proceed once it’s fully negotiated and benefits India’s national interests.

The trade deal can only be finalised when the White House provides advantages to both the countries, ensuring benefits for all parties, Goyal stressed. Stating that national interest is always supreme, the minister on July 4 stated that “if a deal is made then India is always ready to deal with developed countries.”

India-US Trade Deal: What Are The Issues?

  • Following discussions, the Indian delegation has returned to India recently. Tariffs on steel, aluminium (50%), and automobiles (25%) are still unresolved.
  • India has cleared its stance regarding duty concessions to US on agricultural and dairy products. New Delhi continued to maintain its firm stand of keeping its dairy sector protected in all previous deals.
  • The Trump administration is negotiating reciprocal tariff agreements with 10 to 12 countries, aiming to complete these negotiations by July 9th.
  • The India government is uncertain about the possibility of a trade deal with America before a US-imposed tariff deadline on July 9. The specific countries targeted by the tariffs remain unannounced by President Trump.
  • The Reciprocal tariffs are set to take effect on August 1st.
  • The talks include duty adjustments. America is also looking for concession on industrial goods, electric vehicles, wines, petrochemicals, dairy products and agricultural items.
  • India is considering lowering import duties on several labour-intensive sectors, including apparel, textiles, gems and jewellery, leather, plastics, chemicals, oilseeds, shrimp, and horticultural products.

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