July 7, 2025

India and the United States are edging closer to sealing a mini trade agreement, omitting contentious areas such as dairy and agriculture. Talks are progressing intensely in anticipation of the impending tariff deadline specified by the Donald Trump administration. Trump imposed tariffs on several trading partners based on trade surpluses, including a 26% duty on India. The negotiations involve India seeking a complete waiver of the 26% tariff, while the US is pushing for broader market access, including permissions for exporting genetically modified products. The agreement targets trade in goods and may pave the way for additional accords in the future. India is eyeing improved market prospects in the US for sectors like textiles and electronics, while the US is keen on exporting genetically modified crops and cattle feed to India, which poses a challenge due to the nation's predominant subsistence farming practices. However, the US remains firm on maintaining duties above a 10% threshold. The looming deadline of July 9 has Trump suggesting sending tariff letters to countries failing to reach agreements by then, outlining duties on exports to the US. Failure to secure a deal by the deadline could lead to India facing a tariff hike back to 26%. The current negotiations are critical for both countries as they navigate the intricate details of the trade deal.

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Tags: India, Us, Trade deal, Tariffs, Agriculture, Donald trump,