President Donald Trump confirmed that he will not extend the 90-day pause on global tariffs beyond July 9. This decision adds urgency to the ongoing India-US trade negotiations in Washington.
India Extends Stay to Finalize Deal
Although trade talks between the two nations were originally scheduled to end on June 27, Indian officials extended their visit by a day. They hope to reach an interim deal before the tariff deadline, Bloomberg reported.
India Demands Full Tariff Exemption
India is asking for complete exemption from the 26% reciprocal tariff that the US had announced on April 2. The US had paused this tariff temporarily, but a 10% base tariff still remains in place. If talks fail by July 8, India could face new tariff pressure.
Trump Warns of New Tariffs
In an interview with Fox News, Trump said, “I don’t think I’ll need to [extend the pause]. I could, no big deal.” He added that countries will soon receive letters about the new tariffs. “We’ll look at how a country treats us — are they good, are they not so good — some countries we don’t care, we’ll just send a high number out.”
He explained those letters would say, “Congratulations, we’re allowing you to shop in the United States of America, you’re going to pay a 25 per cent tariff, or a 35 per cent or a 50 per cent or 10 per cent.”
US Focuses on Market Access
The US wants India to open its markets further, especially in agriculture, dairy, and energy. Washington also wants India to lower tariffs on products like soybeans, corn, ethanol, wheat, and apples—goods that the US once sold in large volumes to China.
The US is also urging India to allow genetically modified (GM) crops, but India has refused, citing risks to farmers and food security.
India Pushes Back on US Demands
India has made it clear that it won’t sign a deal unless the US addresses two major concerns:
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Zero-duty access for Indian exports like textiles, leather goods, pharmaceuticals, engineering items, and auto parts
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Protection against future US tariffs
Additionally, India is unwilling to reduce duties in agriculture and dairy—two areas considered politically and economically sensitive.
US Unwilling to Offer Zero Tariffs
While American negotiators have shown interest in a deal, they informed India that zero-duty access is not possible right now. However, discussions remain active.
Why This Deal Matters
India wants to protect its domestic sectors while entering the US consumer market, which is the largest globally. On the other hand, the US wants to boost exports, cut its trade deficit, and deepen ties with India, especially as tensions with China grow.
Trump Remains Optimistic
Despite sticking to the tariff deadline, Trump expressed confidence in a possible deal with India. Last week, he said a trade pact with India is “a very big” deal and likely to happen soon.