India–US Trade Talks Miss August 1 Tariff Deadline
India and the United States have not finalized a bilateral trade deal ahead of the August 1 deadline set under the Trump administration’s new tariff policy. As a result, Indian exporters now face the risk of higher U.S. tariffs ranging from 20% to 25% on key products such as pharmaceuticals, textiles, gems, leather, and seafood.
The U.S. deadline is part of a broader push to pressure trade partners into finalizing bilateral agreements or face higher import duties under a reciprocal tariff mechanism.
Exporters Express Concern Over Delays
Several Indian exporters have expressed concern over the lack of clarity, with many delaying shipments or renegotiating U.S.-bound contracts. Industry insiders fear that India could lose price competitiveness in key sectors compared to peers like Vietnam and Indonesia, who are further along in their trade negotiations with the U.S.
Fresh Round of Talks Scheduled
Although no deal was reached in time, both countries remain engaged. A sixth round of talks is set to be held in New Delhi on August 25, with hopes of closing a partial deal by September or October. The focus will be on eliminating or reducing tariffs and securing preferential access for Indian goods in the U.S. market.
India is reportedly seeking concessions in sectors such as pharmaceuticals, engineering goods, and digital services, while resisting U.S. demands to open up sensitive areas like dairy and genetically modified crops.
Market Impact and Government Response
The uncertainty around the trade deal weighed on markets, with key indices dipping due to concerns over possible export slowdowns and continued foreign investment outflows. Despite the delay, officials have stated that progress has been “positive,” and efforts will continue to secure a fair and balanced agreement.
Analysts believe that India still has a window to strike a deal and avoid punitive tariffs, but the next few weeks will be critical in determining the direction of the trade relationship.
