U.S.-India Trade Talks Stalled Over Tariff Disagreements

Trade talks between India and the United States have faltered due to conflicting positions on import duties for auto components, steel, and agricultural products, Indian officials reported. The stalemate jeopardizes hopes of finalizing a deal before President Trump's impending deadline for reciprocal tariffs.

This impasse signifies a drastic turnaround from earlier optimism following President Trump's assertion that India proposed a 'no tariffs' agreement for American goods. Indian negotiators seek a rollback of a proposed 26% reciprocal tariff slated for July 9 and concessions on existing tariffs on steel and auto parts, but the U.S. has yet to acquiesce to these demands.

The U.S. demands India first commit to reducing import tariffs on farm products, vehicles, and alcoholic drinks, a point of contention. Despite ongoing discussions and a potential high-level intervention, progress remains sluggish. Meanwhile, India continues to position itself as a significant U.S. partner, seeking to diversify supply chains and maintain a long-term trade partnership.

(With inputs from agencies.)