In a major development on the trade front, India and the United States have reportedly reached a consensus on the terms of an interim trade agreement. According to reliable sources, the deal is likely to be officially announced on July 8, just one day before a critical tariff deadline expires.
The negotiations were led on India’s behalf by Rajesh Agrawal, Special Secretary in the Ministry of Commerce. Under his leadership, the Indian delegation engaged in a series of high-level talks in Washington, where the two countries ironed out the remaining issues and finalized the contours of the agreement.
The deal arrives at a significant juncture. On July 9, a set of reciprocal tariffs introduced by former U.S. President Donald Trump is set to lapse. These tariffs, aimed at balancing trade terms with multiple countries, had sparked considerable global backlash when introduced. India, one of the affected countries, has been actively lobbying for relief from these duties.
Of particular concern to New Delhi was a steep 26% reciprocal tariff imposed by the U.S. on certain Indian exports. While Washington had earlier suspended this tariff temporarily until July 9 in response to global criticism, a baseline 10% tariff still remains in place. India has been pressing for complete exemption from the additional 26% duty, which has significantly impacted Indian exporters.
Sources indicate that the interim trade deal may include provisions that either remove or soften these tariff burdens, although final details are still under wraps. The agreement is also expected to enhance bilateral cooperation across key sectors, potentially setting the stage for a more comprehensive trade pact in the future.
This trade breakthrough signals a renewed commitment from both sides to strengthen economic ties, particularly at a time when global supply chains are undergoing strategic shifts. For India, the agreement offers an opportunity to regain competitive advantage in the U.S. market, while for the U.S., it opens doors to deeper engagement with one of the world’s fastest-growing economies.
The official announcement on July 9 is likely to shed more light on the exact provisions of the deal and the roadmap ahead for India-U.S. trade relations.
