Countdown for Trade: India and US Rush Towards July Pact

India and the United States are engaged in intensive discussions to seal an interim trade deal by the deadline of July 9, according to inside sources. The Indian negotiating team is expected to visit the US soon to discuss the interim and first phase of the proposed bilateral trade agreement.

The US had announced a 26% reciprocal tariff on Indian goods on April 2, which was later suspended until July 9 by the Trump administration. However, a 10% baseline tariff remains. India is lobbying for exemption from the additional 26% tariff.

The negotiations include areas that are traditionally challenging, such as agriculture and dairy. The US seeks duty concessions on industrial goods, automobiles, and certain agricultural items, while India aims for concessions on textiles, gems, and other products. The stakes are high as neither country wishes to face the consequences of the high tariffs returning post-July 9 deadline.

(With inputs from agencies.)