Overview
- India’s trade delegation has extended its stay in Washington to finalise an interim agreement anticipated within 48 hours that would prevent a 26% U.S. tariff from returning on July 9.
- The deal proposal excludes agriculture, dairy and genetically modified crops to safeguard smallholder farmers’ livelihoods and address food-safety concerns in India.
- Negotiators are centering on reciprocal tariff reductions for labour-intensive exports such as textiles, footwear and leather to rebalance bilateral trade.
- President Trump has signalled optimism about securing “much less tariffs” with India and plans to send other trading partners letters detailing their new levy rates.
- This potential mini-deal follows interim pacts with the U.K. and Vietnam and a framework accord with China under the same 90-day reciprocal-tariff truce.