U.S. and India’s top trade officials are engaged in high-level talks this week to finalise tariff cuts in sectors like agriculture and automobiles as part of an interim deal, with an announcement expected later this month, according to two government sources.
A U.S. delegation led by senior officials from the Office of the United States Trade Representative (USTR) began closed-door, two-day discussions in New Delhi on Thursday with Indian trade officials headed by chief negotiator Rajesh Agrawal, the sources said.
“During the current round of talks, negotiators are discussing tariff cuts on specific sectors including agriculture and autos, and proposed benefits for Indian companies,” one Indian government source said.
Statement Expected By Sunday
The deal may be formally announced by month’s end, before the self-imposed deadline of July 9 by President Trump, but a statement is expected once meetings wrap up, possibly by Sunday, a second official said.
Trade Minister Piyush Goyal, currently in Italy, may return to meet the delegation, the official added.
The officials spoke on the condition of anonymity due to the sensitivity of the discussions.
India’s trade ministry didn’t immediately respond to requests for comments.
U.S. Commerce Secretary Howard Lutnick said in Washington on Monday that trade negotiations were progressing and a deal could be finalised soon.
India and the U.S. agreed in February to work on a phased deal, aiming to lift bilateral trade to $500 billion by 2030.
India Resists Market Pressure
Officials said India, buoyed by recent trade pacts with the UK and EU talks, is resisting U.S. demands to open its farm and dairy markets, citing potential rural backlash.
“We are ready to offer a better deal than the UK pact, with average tariffs down to 10%, matching the U.S. base rate, and near-zero duties with quotas in exchange for market access and supply chain linkages,” a third official said.
Washington has flagged India’s average farm tariff of 39%, with some duties reaching 45-50%. It is also pushing India to allow corn imports for ethanol production.
Bilateral trade with the U.S., India’s largest trading partner, rose to $129 billion in 2024, with India posting a $45.7 billion surplus.
(With inputs from Reuters)
