India-US Trade Talks Intensify in Washington as Tariff Deadline Looms

An Indian Commerce Ministry team, led by Deputy Chief Negotiator Anurag Jain, arrived in Washington for a four-day round of talks starting Monday to advance the proposed Bilateral Trade Agreement (BTA) with the United States. Chief Negotiator Rajesh Agrawal, Special Secretary in the Department of Commerce, will join the discussions on Wednesday, with the talks concluding Thursday. The visit is critical as both nations race to resolve disputes in agriculture and automobiles before the U.S. imposes a 26% reciprocal tariff on Indian goods on August 1, 2025, following a 90-day suspension announced by President Donald Trump on April 2.

India remains firm on protecting its agriculture and dairy sectors, particularly against U.S. demands for duty concessions on dairy, apples, tree nuts, and genetically modified crops, citing the livelihoods of millions of small-scale farmers. “India has not granted dairy concessions in any prior trade agreements,” an official reiterated, signaling a hard stance. In contrast, India seeks U.S. tariff reductions on labor-intensive exports like textiles, gems and jewelry, leather, plastics, chemicals, shrimp, and horticulture products, alongside relief from 50% tariffs on steel and aluminum and 25% on automobiles.

The U.S. pushes for market access for industrial goods, electric vehicles, wines, and petrochemicals, aiming to address its $44.4 billion trade deficit with India in FY2025. Bilateral trade reached $186 billion, with India’s merchandise exports to the U.S. rising 21.78% to $17.25 billion and imports up 25.8% to $8.87 billion in April-May. Both sides target doubling trade to $500 billion by 2030, with an interim deal eyed before the first phase concludes by September-October.

Also Read: India Pushes for US Trade Deal by Fall

Commerce Minister Piyush Goyal emphasized that India won’t bow to deadlines, prioritizing national interests. The talks, following a June 26-July 2 round, aim to package resolved issues as an interim deal while continuing negotiations on sticking points. Trump’s recent tariff letters to 13 countries, including Japan and South Korea, heighten pressure, but India’s absence from the list offers hope for a breakthrough.

Also Read: US Extends Suspension of Reciprocal Tariffs to August 1, Offering Relief to Indian Exporters