Indian team arrives in U.S. for final push on stalled trade deal talks

A crucial round of trade negotiations is underway as a high-level Indian delegation arrives in the U.S. for a final push to secure a mini trade deal before the July 8, 2025 deadline. This date marks the end of a 90-day pause granted by U.S. President Donald Trump on the ‘Liberation Day’ tariffs — steep import duties affecting multiple countries, including India. Without a deal or an extension, Indian exports to the U.S. will be hit with 26% tariffs starting July 9.

The talks are focused on bridging key gaps. The U.S. is pressing India to open its markets to genetically modified (GM) crops and cow milk—two sectors India has never liberalized under any prior trade agreements. In return, India is seeking removal of these punitive tariffs, particularly those impacting Indian steel, aluminium, and labour-intensive exports.

President Trump recently hinted at a potential breakthrough, saying during a White House event on June 26, "We have one coming up, maybe with India — a very big one — where we’re going to open up India.”

The U.S. is demanding tariff reductions on industrial goods, electric vehicles, wine, petrochemicals, dairy, apples, tree nuts, and GM crops. Meanwhile, India is pushing for relief and market access for its core export sectors, including textiles, gems and jewellery, leather, garments, plastics, chemicals, shrimp, oilseeds, bananas, and grapes.

India had already taken initial steps in its last Union Budget by lowering tariffs on products like shrimp, luxury automobiles, and select electronics — signaling a willingness to negotiate.

As the July 8 deadline looms, both sides are racing against time to strike a deal that could prevent a trade standoff and unlock billions in bilateral trade.