Archive · 2 Jun 2025
India, U.S. Aim for Interim Trade Deal by Late June
India and the U.S. are working on a quick trade deal for goods and digital services.
This interim deal aims to avoid tariffs, with a goal of finalizing it by late June.
Both countries are discussing what each side can import and export, including industrial goods, agricultural products, and the lifting of retaliatory tariffs by the U.S. India is focused on protecting certain sectors like dairy and agriculture.
The goal is to double trade between the two nations, with a larger trade agreement planned by October 2025.
India and the U.S. are negotiating an interim trade deal expected by the last week of June.
The deal will include goods and digital services, aiming to avoid the reimposition of tariffs.
The U.S. cannot lower tariffs below MFN rates without Congressional approval.
India is seeking full exemption from U.S. tariffs.
Both countries aim to double bilateral trade, with a broader agreement planned for October 2025.
- Who
- India and the United States.
- What
- An interim trade deal between India and the U.S.
- When
- Expected to be finalized by the last week of June 2025.
- Where
- Discussions and negotiations between India and the United States.
- Why
- To avoid the reimposition of reciprocal duties and to make progress towards a broader trade agreement.
India's Priorities
U.S. Demands
Tariffs and Market Access
India's Priorities
India is pushing for Minimum Import Prices and quotas on sensitive sectors and reduced tariffs on labor-intensive goods.
U.S. Demands
The U.S. seeks concessions on industrial goods, automobiles, wines, petrochemicals, dairy, and other agricultural products.
GM vs. Non-GM Products
India's Priorities
India is open to importing non-GM agricultural products.
U.S. Demands
The U.S. seeks to import GM crops.
- Target Date
- Last week of June 2025
- Agreement Type
- Interim Trade Deal
- Trade Focus
- Goods and digital services
- India's Tariff Strategy
- Seeking full exemption from additional U.S. tariffs
- Bilateral Trade Goal
- Double trade to $500 billion
Sources
India & US may finalise interim trade deal by June 25 ahead of Donald Trump’s tariff deadline
India, US may agree on interim trade deal by June 25: Sources
Trump used offers of trade access to broker India-Pakistan ceasefire, claims U.S. Commerce Secretary
‘Resist any agreement shaped by threats…’: After US court strikes down Donald Trump’s tariffs, GTRI says India should proceed with caution on trade deal
