New Delhi: Negotiators from India and the United States have finalised all terms of an interim trade agreement, raising expectations that the deal will be announced by July 8, ahead of the scheduled expiration of the US tariff pause on July 9, according to reports.
An Indian delegation led by Rajesh Agrawal, Special Secretary in the Department of Commerce, has reportedly been in Washington to wrap up the negotiations, and sources indicate both sides have locked in terms across multiple sectors. The suspension of a 26 percent US tariff on Indian goods—originally imposed on April 2—is set to end July 9, and Washington has signalled it will not extend the pause unless an interim deal is reached.
The agreement under discussion covers key areas of strategic interest. The US has pressed for duty reductions on electric vehicles, wine, petrochemicals, farm goods, dairy, apples, tree nuts, and genetically modified crops . India, in turn, is seeking tariff relief for labour‑intensive exports including textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. Notably, India has reiterated that agriculture and dairy remain firm “red lines”, aligning with its stance in previous trade agreements.
Both governments are expected to convert the interim deal into a comprehensive Bilateral Trade Agreement (BTA) by October, furthering the momentum initiated during Prime Minister Narendra Modi’s February visit to Washington, where both countries endorsed the goal of doubling bilateral trade to $500 billion by 2030.
The US President Donald Trump has been signalling a removal of trade barriers in public statements, describing such an outcome as “unthinkable,” and emphasising that the deadline is unlikely to shift If successful, the interim deal will avert the reinstatement of high reciprocal tariffs on Indian goods and provide a meaningful boost to both economies. Further negotiations are anticipated this autumn to expand the agreement’s scope across additional sectors.
