Archive · 11 Jun 2025
India Accelerates Trade Talks with US to Secure Early Gains
India is trying to quickly make a trade deal with the US to avoid extra taxes on goods.
They're talking about things like how easy it is to sell products in each other's countries, and digital trade.
The US already put a small tax on many countries, and India wants it gone, as well as other existing tariffs.
It's tricky because both countries disagree on some things, especially in agriculture, where India doesn't want to make it easy for the US to sell certain foods.
The US wants India to lower its taxes so that they can sell more, reducing the trade gap between the two nations.
India aims to expedite trade talks with the US for 'early gains' before the July 9 deadline to avoid tariffs.
Negotiations covered market access, SPS/TBT, digital trade, and legal frameworks.
The US imposed a 10% baseline tariff in April, which India seeks to eliminate.
An interim deal is challenging due to differences on tariff cuts and market access, particularly in agriculture.
The US wants India to reduce tariffs to decrease the $40 billion trade deficit.
- Who
- India and the United States.
- What
- India is accelerating trade talks with the US to secure early gains.
- When
- Before the July 9 deadline to avoid reciprocal tariffs.
- Where
- Negotiations held in New Delhi.
- Why
- To avoid tariffs and finalize initial trade agreement elements.
India's Stance
US Stance
Tariffs and Market Access
India's Stance
Wants to eliminate US tariffs, including the 10% baseline.
US Stance
Wants India to lower tariffs, especially in sectors like agriculture.
Agricultural Goods
India's Stance
Willing to reduce tariffs on auto, motorcycles, alcohol, and some farm items.
US Stance
Wants market access for items like rice, wheat, and dairy.
- Deadline
- July 9, 2025
- Baseline Tariff
- 10% imposed by US on India
- Focus of Talks
- Market Access, SPS/TBT, Digital Trade, Customs
- Trade Deficit
- $40 billion (US with India)
- US Demands
- Lower tariffs, greater market access
Sources
Digital trade in focus in early US BTA
US puts hard terms on table, presents a take-it-or-leave-it offer; demands access to agriculture, dairy, pharma
India and US edge closer to trade deal as deadline for tariff pause nears
Daily Briefing: The European turn
As Trump's Tariff Clock Ticks, India And US Rush To Seal $500 Billion Trade Pact
US rejects India’s WTO plea on auto tariffs after steel, aluminium dispute