New Delhi: India and the United States are working towards finalizing an interim trade agreement by July 8, just before the US-imposed 26% reciprocal tariff on Indian goods comes into full effect.
On April 2, 2025, the US announced a 26% additional tariff on Indian products as a reciprocal measure. However, it temporarily suspended the tariff for 90 days, giving both sides time to negotiate. This suspension is set to expire on July 9, leaving a small window for both countries to settle differences and avoid a new trade conflict.
According to government sources, India is asking for a full waiver from the 26% tariff as part of the deal. Officials say the talks are progressing positively and are expected to conclude before the deadline. If successful, the interim agreement will ease tensions and open doors for deeper trade cooperation between the two countries.
The talks are part of ongoing efforts to strengthen India–US economic ties, especially in areas such as technology, pharmaceuticals, and agriculture. The tariff issue had raised concerns among Indian exporters, who feared reduced competitiveness in the US market.
The interim deal would also signal a commitment to long-term trade stability and cooperation between the two democracies. Officials from both sides are reportedly in constant contact, and announcements could be made in early July.
