Archive · 2 Jun 2025
India and US Face Hurdles in Trade Deal Negotiations
India and the US are working on a trade deal.
Agriculture and dairy are major hurdles, as India wants to protect its market.
The US wants to export these products to India, but India is resistant, especially regarding genetically modified crops.
Both sides are negotiating tariffs and how much of each product can be traded.
India wants to eliminate all tariffs, but the US may insist on some tariffs.
They aim for a preliminary deal soon, with further agreements planned later.
A complete rollback of previous tariffs seems unlikely.
India and the US are negotiating a trade deal amid ongoing talks.
Agriculture and dairy are major sticking points in the deal.
India wants to protect its agricultural and dairy markets.
The US aims for complete tariff elimination on both sides.
An 'early harvest' deal is being targeted.
- Who
- India and the United States
- What
- Negotiations for an 'early harvest' trade deal.
- When
- Ongoing, with an interim deal targeted by July 8.
- Where
- Washington
- Why
- To facilitate trade amid global uncertainties.
India's Position
US Position
Market Access
India's Position
India seeks to protect its dairy and agricultural markets.
US Position
US aims to export dairy and agricultural products to India.
Tariffs
India's Position
India wants complete tariff elimination.
US Position
US might insist on tariffs.
- Involved Parties
- India, United States
- Type of Agreement
- Early Harvest Deal
- Key Sticking Points
- Agriculture, Dairy
- Timeline
- July 8 (Interim Deal Target)
- India's Proposal
- Zero-for-Zero Tariff Exchange
- Potential Tariff
- 10% Duty on Indian Goods (US suggestion)
Sources
First phase of India-US trade deal likely before July; India wants full exemption from Donald Trump’s 26% tariffs on certain goods: Report
Explained: Why India is well positioned to deal with negative effects of Trump’s tariffs & top reasons it will be at an advantage
Trump claims he ended India-Pakistan hostilities, suggesting it was ‘through trade’
India seeks removal of Trump tariffs under early trade deal with US
India, EU may finalise interim FTA by July
