India-U.S. Trade Talks: Overcoming Stalemates Ahead of Tariff Deadline

Indian officials are prolonging their visit to Washington in an effort to finalize a trade deal with the U.S. under the Trump administration, as per two Indian government sources. The negotiations have faced hurdles over import duties for auto components, steel, and farm goods, with a looming deadline of July 9 set by President Trump for possible reciprocal tariffs.

The delegation was originally supposed to conclude talks by last Friday, but they have extended their stay to resolve disagreements, especially concerning the agriculture and dairy sectors. India has proposed tariff concessions on a majority of tariff lines; however, the final decision will be made by the political leadership of both nations, government sources who spoke on condition of anonymity revealed.

The Indian commerce ministry and the U.S. Trade Representative Office did not offer immediate comments. Nevertheless, Finance Minister Nirmala Sitharaman indicated that agriculture and dairy remain critical challenges in the discussions with the U.S. Despite this, she expressed optimism about reaching a substantial agreement soon, highlighting the benefits for India.

(With inputs from agencies.)