INVC NEWS
New Delhi — : India and the United States are advancing talks on an interim trade agreement that could be finalized by June 25, as both nations seek to resolve tariff tensions ahead of the July 9 expiration of the suspended 26% US retaliatory tariff on Indian goods. According to government sources, a high-level American delegation is expected to visit New Delhi next month to accelerate negotiations.
The US had imposed the 26% reciprocal tariff on April 2, targeting Indian exports. However, it temporarily suspended the duty until July 9 to create space for diplomatic dialogue. Indian authorities are now pushing for a complete exemption under the terms of an interim agreement that would serve as a precursor to the first installment of the much-anticipated Bilateral Trade Agreement (BTA).
Senior trade officials from both countries have ramped up efforts in recent weeks. Rajesh Agarwal, India’s chief negotiator and Special Secretary in the Department of Commerce, completed a four-day visit to Washington last week, holding in-depth discussions with his US counterpart. Commerce Minister Piyush Goyal also made a parallel visit and met US Commerce Secretary Howard Lutnick twice to push for a breakthrough.
Despite the tariff suspension, Indian goods are still subject to a 10% baseline import tax by the US. Indian negotiators are urging Washington to lift all such duties as part of the interim deal. Both countries have set an internal deadline to conclude the first phase of the full BTA by September or October this year.
With bilateral trade reaching $131.84 billion, the United States has retained its position as India’s largest trading partner for the fourth consecutive year in FY 2024–25. The US accounts for 18% of India’s merchandise exports, 6.22% of its imports, and 10.73% of the country’s overall goods trade—underlining the strategic importance of a mutually beneficial trade framework.
