Tariffs, Talks & Tranches—India–US Trade Deal Picks Up Steam Ahead of Fall Deadline

Image Source: The Economic Times

India and the United States are intensifying negotiations to finalize the first tranche of a multi-sector Bilateral Trade Agreement (BTA) by Fall 2025, aiming to more than double bilateral trade to $500 billion by 2030. According to senior Indian trade officials, a delegation led by Special Secretary Rajesh Agrawal is currently in Washington, extending its stay as talks enter a critical phase.

Key Developments

Interim Deal in Focus: Both sides are working toward an early harvest agreement to avoid the reimposition of 26% reciprocal tariffs set to resume on July 9, following a 90-day suspension by the Trump administration.
Sensitive Sectors at Play: India is pushing for duty concessions on labor-intensive exports like textiles, leather, gems, and garments, while resisting U.S. demands to open up its agriculture and dairy sectors, which remain politically sensitive.
Strategic Goals: The BTA is expected to cover goods, services, investments, and digital trade, with both countries aiming to deepen supply chain integration and reduce tariff barriers.

Official Statements

“Negotiations are focused on an interim deal with low-hanging fruits. Sensitive items may be dropped for now to enable early wins,” said a senior Indian official. “India negotiates on its own terms. A deal will happen only when it aligns with national interest,” emphasized Commerce Minister Piyush Goyal, rejecting any timeline-based pressure.

What’s Next

The Indian delegation is expected to continue in-person and virtual discussions with U.S. counterparts, including Assistant USTR Brenden Lynch, in the coming weeks. If successful, the interim pact will pave the way for the first formal tranche of the BTA by September–October 2025, unlocking new opportunities for trade and investment.

Sources: The Hindu, MSN, Financial Express, News18, IndiaTV