Overview

• India and the US wrapped up their fifth round of bilateral trade talks on July 17 without resolving disputes over agricultural and dairy concessions or the rollback of auto, steel and aluminium tariffs.
• On July 17 the US delegation informed the WTO that its Section 232 duties on automobiles, steel and aluminium are national security measures, rejecting India’s classification of them as safeguard actions.
• Indian exporters frontloaded shipments in June and July—driving a 23.5% surge in exports in June—to secure orders before President Trump’s 26% tariffs take effect on August 1.
• New Delhi has formally reserved the right under WTO rules to impose retaliatory duties if US tariffs are reinstated, keeping exporters’ long-term investment plans on hold.
• Both sides are racing to finalize an interim trade agreement before the August 1 deadline, but unresolved standoffs over sectoral duties signal that talks will continue into late July.