India–US Tariff Deal Nears Conclusion Amid Last-Minute Negotiations

 India is poised to conclude a long-pending tariff agreement with the United States, with top-level discussions entering their final phase. Senior government officials have confirmed that the negotiations are in their “last leg,” and a resolution may be reached within the next 48 hours.

While progress has been encouraging, New Delhi remains steadfast in safeguarding core domestic interests, particularly the agricultural sector. A major sticking point continues to be market access in India's dairy industry—a vital source of livelihood for millions of rural farmers. Indian negotiators have made it clear that any sweeping liberalisation in this area is non-negotiable.

Sources close to the talks noted that U.S. negotiators have shown a degree of understanding regarding India’s sensitivities, particularly in relation to agriculture and allied industries. As part of the evolving deal, India is considering tariff concessions on select U.S.-manufactured electronic goods. In exchange, Washington may extend limited relief on dairy imports and certain genetically modified products. These proposed trade-offs featured prominently in the latest round of negotiations held in Washington, D.C.

External Affairs Minister Dr. S. Jaishankar has expressed optimism about the deal, emphasising the importance of a “meeting ground” that would balance both countries’ economic priorities.

U.S. President Donald Trump also voiced confidence in the trajectory of the discussions, suggesting a deal could result in substantially reduced tariffs on American exports—provided India moves to ease market access for U.S. firms.

“Right now, India doesn’t accept anybody in. I think India is going to do that. If they do, we’re going to have a deal for less—much less—tariffs,” President Trump said, referring to the 26% retaliatory tariffs announced on April 2, which remain suspended amid the ongoing talks.

In a signal of India’s commitment to resolving key issues, the Indian negotiating team—led by Commerce Secretary Rajesh Agrawal—has extended its stay in Washington to continue high-level deliberations. Efforts are now concentrated on bridging gaps in sensitive sectors such as agriculture, dairy, and digital trade.

A White House official familiar with the discussions noted that the Trump administration is prioritising trade pacts with strategic partners such as India ahead of the July 9 tariff deadline. The move underscores Washington’s broader goal of strengthening bilateral economic ties with New Delhi against the backdrop of shifting global trade dynamics.