Washington DC [US] July 2 : US President Donald Trump on Tuesday (local time) reaffirmed that India-US will soon strike a trade deal with "much less tariffs", allowing both countries to compete.
"I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs," Donald Trump said.
India and the US have been negotiating over a Bilateral Trade Agreement (BTA) before the critical July 9 deadline of the 90-day pause on tariff escalations.
Meanwhile, India has adopted a firmer stance on agricultural matters as high-stakes trade negotiations with the United States reach a pivotal moment, government sources said on Monday.
The Indian delegation, led by Chief Negotiator Rajesh Agrawal, has extended its stay in Washington, as reported byearlier. The two negotiations were scheduled on Thursday and Friday, but have been extended as both nations work urgently to finalise an interim trade agreement before a crucial July 9 deadline.
The extended negotiations come as both countries face the looming return of suspended 26% reciprocal tariffs. These punitive measures, imposed initially during the Trump administration on April 2, were temporarily suspended for 90 days but will automatically resume if no agreement is reached.
"The failure of these trade discussions would trigger the immediate reimplementation of the 26% tariff structure," warned a senior official.
India's hardened position reflects the politically sensitive nature of its agricultural sector. The country's farming landscape is dominated by small-scale subsistence farmers with limited land holdings, making agricultural concessions particularly challenging from both economic and political perspectives.
Notably, India has never opened its dairy sector to foreign competition in any previous free trade agreement a precedent it appears reluctant to break even under US pressure.
The United States is pushing for reduced duties on agricultural products, including apples, tree nuts, and genetically modified crops.
Meanwhile, India seeks preferential access for its labour-intensive exports, such as textiles and garments, Gems and jewellery, Leather goods, and agricultural products like shrimp, oilseeds, grapes, and bananas.
Beyond the immediate interim agreement, both nations are working toward a comprehensive bilateral trade agreement (BTA) with the first phase targeted for completion by fall 2024. The ultimate goal is ambitious: more than doubling bilateral trade from the current $191 billion to $500 billion by 2030.
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