Will India-US Trade Talks Continue Next Week?

New Delhi, June 6 (NationPress) Officials from India and the U.S. have been involved in intensive trade discussions aimed at reaching an interim agreement on tariff reductions, with the July 9 deadline approaching. A senior official has confirmed that these negotiations will extend into the upcoming week.

Leading the Indian delegation, Additional Secretary Rajesh Agrawal has participated in talks with senior representatives from the Office of the United States Trade Representative (USTR), who have arrived in Delhi for the weekend discussions.

As stated by an official, “Both nations are deeply engaged in targeted discussions to enhance market access, lower tariff and non-tariff barriers, and improve supply chain resilience and integration.”

The goal is to finalize an interim trade agreement before the July 9 deadline established by U.S. President Donald Trump for halting new tariffs on Indian goods for 90 days. Following this, negotiations are set to continue for a more comprehensive trade deal anticipated to be signed in September-October.

This U.S. delegation visit follows Union Commerce Minister Piyush Goyal's recent trip to Washington for trade discussions.

India has suggested substantial tariff reductions, potentially decreasing average duties from 13 percent to 4 percent, in exchange for exemptions from U.S. tariff increases imposed during the Trump administration, mirroring concessions made in India's recent free trade agreement with the United Kingdom.

India is advocating for market access for its industrial outputs, including steel, aluminium, auto parts, and pharmaceuticals. The U.S. recently increased safeguard duties on steel and aluminium imports to 50 percent, negatively affecting India's exports. Although India has approached the WTO regarding this matter, it is hopeful for a resolution through the bilateral trade agreement.

On the U.S. side, there is an interest in broader market access for agricultural and dairy products. However, for India, the welfare of small farmers is a critical consideration, making this a sensitive topic.

India may permit imports of specific agricultural items, like almonds, as they are already being imported. In return, India is likely to advocate for enhanced access to the U.S. market for seafood products, such as shrimp and fish, along with spices, coffee, and rubber—areas where Indian exporters excel but face tariff competition in the U.S. market.

Trade volume between India and the U.S. reached $129 billion in 2024, with India enjoying a trade surplus of $45.7 billion. In February, Prime Minister Narendra Modi and President Trump initiated 'Mission 500', an initiative aiming to double bilateral trade to $500 billion by 2030, announced during PM Modi’s visit to Washington.

U.S. Secretary of Commerce Howard Lutnick also indicated that a trade deal between India and the U.S. is likely to be concluded soon, as he mentioned in his address at the U.S.-India Strategic Partnership Forum Annual Leadership Summit in Washington.