India, U.S. extend trade talks amid deadline

New Delhi

Trade negotiations between India and the United States have been extended into next week as both sides push to finalize an interim deal before the July 9 deadline, according to government sources. A delegation from the Office of the United States Trade Representative (USTR), led by senior officials, held two days of talks in New Delhi with Indian negotiators headed by Rajesh Agrawal. While the talks were initially expected to conclude by Friday, they will now continue on Monday and Tuesday to bridge remaining differences, officials confirmed.

The discussions have focused on tariff reductions in the agricultural and automotive sectors, improving market access, addressing non-tariff barriers, and strengthening supply chain integration. A senior Indian official said both sides are engaged in “focused discussions” to reach a limited trade agreement. This interim deal could lead to the rollback of 26% reciprocal tariffs on Indian goods — tariffs that the U.S. had paused for 90 days across multiple trade partners. However, Indian exporters are reportedly delaying shipments, concerned about missing the deadline.

India’s exports to the U.S. surged nearly 28% year-on-year to $37.7 billion between January and April, while imports stood at $14.4 billion, widening India’s trade surplus. India remains firm on not opening its agricultural and dairy sectors to U.S. imports due to concerns about small farmers competing with subsidized American products. New Delhi is also keeping its WTO complaint on U.S. steel and aluminium tariffs active, even as it pursues a bilateral solution.