India and the United States are on the verge of finalizing an interim trade agreement—one of the first under the Biden administration. Talks are being extended in Washington to meet a July 9 deadline
The deal aims to prevent a looming 26% U.S. tariff on Indian goods, announced earlier by Donald Trump and temporarily paused for 90 days
The U.S. is demanding access to Indian markets for agriculture, GM crops, and dairy. India, however, stands firm, protecting the interests of its small-scale farmers
India refuses to compromise on agriculture and dairy sectors, with officials stating that “red lines will not be crossed” in any trade deal
Washington is also seeking tariff cuts on electric vehicles, petrochemicals, industrial goods, and even wine, pressing for a liberalized trade regime
If no deal is reached by July 9, the U.S. will impose a 26% tariff on Indian exports. Both sides are racing against time to de-escalate