Stalled Trade Talks: India's Tariff Tug-of-War with the U.S.

Trade negotiations between India and the United States have encountered unexpected obstacles over import duties on auto components, steel, and agricultural products. Indian officials confirmed that hopes of reaching a deal before President Donald Trump's July 9 deadline for reciprocal tariffs have diminished.

Once seen as promising, the talks have hit a snag due to the U.S.'s demand for India to commit to significant tariff reductions on farm products, cars, and alcoholic beverages, coupled with the easing of non-tariff barriers. With India seeking concessions on proposed U.S. tariffs, the two nations find themselves at an impasse.

While Prime Minister Narendra Modi aims to position India as a vital partner by attracting U.S. businesses, direct intervention by Modi or Trump could potentially break the deadlock. Despite challenges, Indian officials remain hopeful for a long-term partnership with the U.S., even as they prepare for a broader trade agreement by 2025.

(With inputs from agencies.)