US Nears Trade Deal With India Before August Tariffs
The United States and India are reportedly close to finalising a bilateral trade agreement ahead of the August 1 deadline set by President Donald Trump for the implementation of new tariffs. Negotiators from India’s Commerce Ministry are currently in Washington to hold final-stage discussions, with both sides aiming to resolve key differences in time to avoid any disruption in trade flows.
The proposed deal is expected to enhance U.S. market access in India while ensuring New Delhi’s core sectors—especially agriculture and dairy—remain protected. India is seeking a tariff schedule that mirrors or improves upon deals already offered to countries like Indonesia and Vietnam, who secured 19% and 20% flat tariffs respectively under earlier agreements. However, the U.S. has proposed a flat 10–15% tariff model for smaller trading partners, and India is pushing for preferential treatment given its market size and strategic role.
Talks have focused on potential Indian concessions in the industrial sector, including reduced tariffs on U.S. machinery, electronic goods, and energy imports. In return, India is expecting assurances on agricultural protections and future exemptions under any expanded tariff plans.
While a deal with the European Union is also said to be nearing conclusion, talks with Canada are reported to be stalled. The August 1 deadline is significant as failure to reach agreements could lead to the imposition of broad-based tariffs on nearly all imports into the United States, including key sectors like pharmaceuticals, auto components, and textiles from India.
If successfully signed, the U.S.-India trade deal could mark a turning point in bilateral economic relations and offer relief to several export-driven Indian industries facing tariff uncertainty.
