Overview

• India is seeking full exemption from the 26% reciprocal tariff imposed by the US on April 2, currently suspended until July 9 under a 90-day pause.
• The interim trade deal under negotiation is expected to cover goods, non-tariff barriers, and select digital services, with both sides targeting early mutual benefits.
• India aims to protect sensitive sectors like agriculture and dairy through quotas or minimum import prices while pushing for tariff relief for labor-intensive exports such as textiles and leather.
• The US is requesting tariff reductions on goods including electric vehicles, wines, petrochemicals, and agricultural items like apples and tree nuts.
• Negotiations among chief negotiators continue through May 22, with both nations working to finalize the first phase of a broader trade agreement by fall 2025.