Archive · 9 Jun 2025
US-India Trade Deal Faces Challenges Amidst Tariff Hikes
The US and India are trying to make a trade deal.
They're aiming to finalize a small deal before July 8th, but higher taxes on steel and aluminum by the US are making things tricky.
India wants to get rid of these taxes on their goods.
Both countries are working hard to boost trade, but the new taxes are slowing things down, and India is even considering its own taxes in response.
US and India are negotiating a trade deal to be implemented in phases.
A preliminary agreement is sought before the July 8 deadline.
The US imposed a 50% tariff on steel and aluminum, impacting negotiations.
India hopes to eliminate these tariffs and is considering retaliatory duties.
The final phase of the deal could require US Congress approval.
- Who
- US and Indian trade delegations.
- What
- Ongoing trade negotiations between the US and India.
- When
- Ongoing, with a deadline of July 8 for a preliminary deal.
- Where
- India, with implications for US trade.
- Why
- To finalize a trade deal and avoid tariffs.
India
US
Tariffs on Steel and Aluminum
India
Hopes for the complete removal of US tariffs; proposed retaliatory duties at the WTO.
US
Imposed 50% tariffs on steel and aluminum, rejecting India's request for an exemption.
- Focus
- Bilateral Trade Agreement
- Deadline
- July 8 (Preliminary Agreement)
- Tariff Concern
- 50% tariffs on steel and aluminum
- Phases
- Likely three phases
- Indian Exports
- $4.56 billion (iron, steel, aluminum to US - FY25)
Sources
India will protect farmers’ interest in US trade talks: Shivraj Singh Chouhan
US trade team extends India stay as talks gather momentum
Export-import policy must protect farmers’ interests
US-India Trade Talks extended: Key decisions expected this week?