A US trade delegation will arrive in India on August 25 for the sixth round of negotiations aimed at finalizing a bilateral trade agreement (BTA), with an interim deal targeted before the August 1 deadline for US-imposed tariffs, an official confirmed. The talks, led by India’s chief negotiator Rajesh Agrawal and US Assistant Trade Representative Brendan Lynch, follow the fifth round held last week in Washington, as both nations race to secure a deal amidst looming 26% tariffs announced by President Donald Trump on April 2.
India is pushing for the removal of the 26% tariff, alongside reductions in US duties on steel (50%) and automobiles (25%), while firmly resisting US demands for concessions on agricultural and dairy products. Domestic farmers’ associations have urged excluding agriculture from the pact, aligning with India’s stance of never granting dairy concessions in free trade agreements. Conversely, the US seeks duty reductions on industrial goods, electric vehicles, wines, petrochemicals, dairy, apples, tree nuts, and genetically modified crops.
The negotiations also cover non-market economies and SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies), critical for strategic trade. India is advocating for duty concessions in labor-intensive sectors like textiles, gems, jewelry, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas, while reserving its right to impose retaliatory duties under WTO norms. Both sides aim to conclude the first phase of the BTA by September-October, targeting a doubling of bilateral trade to $500 billion from $191 billion.
Also Read: India-US Trade Talks Intensify in Washington as Tariff Deadline Looms
India’s merchandise exports to the US surged 22.8% to $25.51 billion in the April-June quarter of FY26, with imports up 11.68% to $12.86 billion, underscoring the stakes of the talks. Commerce Minister Piyush Goyal emphasized that India prioritizes national interest over rushed deadlines, with the August 25 talks crucial for avoiding trade disruptions.
Also Read: India Pushes for US Trade Deal by Fall