Overview

• Negotiators have pushed discussions into next week to resolve outstanding differences and finalize an interim trade pact before the 90-day U.S. tariff pause expires on July 9
• A U.S. delegation led by senior officials from the Office of the United States Trade Representative has held in-depth talks with India’s chief negotiator Rajesh Agrawal on cutting duties in farming and automotive sectors
• India is proposing to lower average tariffs from about 13% to near 4% in exchange for full exemption from a 26% reciprocal levy imposed under President Trump’s administration
• New Delhi has resisted U.S. demands for broader access to its agricultural and dairy markets, citing livelihood concerns for small farmers and reserving the right to pursue WTO retaliation if bilateral talks fail
• Both sides aim to build on the interim accord with a comprehensive Bilateral Trade Agreement by September-October 2025 to more than double two-way trade to $500 billion by 2030