No Interim Trade Deal Yet, Indian Negotiators Return From Washington DC: Report

New Delhi: There is no interim trade deal in sight between India and the United States yet, and Indian negotiators returned from week-long talks in Washington D.C. on Friday (July 4), as per a report by the Indian Express. A deal is therefore not likely by July 9, the day from which ‘reciprocal’ tariffs imposed by the US on several goods will be applicable to India.

Taking a firm stand, India said that it will not bow down to pressure from deadlines.

“India never makes a trade deal on a deadline or under a time limit,” Union minister for commerce and industry Piyush Goyal told the media on Friday when asked about July 9. “We will accept the deal when it is good, fully mature and in the national interest,” he added.

On April 2, US President Donald Trump announced ‘reciprocal’ tariffs for many of its trading partners based on their trade surpluses with America, in order to tackle the “large and persistent goods trade deficits” that his country was facing.

According to a statement announcing this move, annual US goods trade deficits have grown by over 40% in the past five years, reaching $1.2 trillion in 2024.

The US also announced a 10% universal tariff on all imports effective from April 5.

However, the US on April 9 temporarily suspended all rates above this 10% baseline until July 9 so as to allow opportunities for negotiations between countries.

For India, the US imposed a 26% levy as a ‘reciprocal’ tariff, and this is what will be applicable on certain goods being imported into the US from India from July 9. However, the baseline 10% duty on Indian exports is already applicable.

Trump has repeatedly expressed his displeasure with India's import tariffs, calling the country a “tariff king” and a “very big abuser” of Indo-US trade ties.

India and the US in February agreed to start negotiations over a trade deal and implement its first tranche by autumn this year. The two sides have been in talks over an interim deal in exchange for relief from Washington's ‘reciprocal’ tariff.

India’s trade negotiators had gone to the US to iron out the interim trade deal, which would aim to focus on US imports of steel, agriculture and dairy products, automobiles and more. However, despite no deal, Indian negotiators returned on July 4.

But the talks are still ongoing, and the deal “is not contingent on any date”, the Indian Express quoted a government official as saying.

“India’s key interests are sustained access for labour-intensive goods such as textiles and footwear. Auto component exports are also a key interest,” the official told IE.

Per the official, the US is not willing to give concessions on steel to any country and India has imposed safeguard duties to protect its domestic industry. The official told the newspaper that “all possibilities are open” and that the trade deal would be signed only when it is mutually beneficial for both countries.

Meanwhile, on Friday, Trump said he had signed letters to 12 countries listing the various tariff rates they would face on goods they export to the US, reported Reuters. According to the US president, these “take it or leave it” offers would be sent out on Monday. He did not, however, name which countries these were.

Reuters also reported that Trump said early on Friday that the ‘reciprocal’ tariffs that Washington plans to ‘offer’ vary – some being even higher, ranging up to 70% – and that most would become effective from August 1.

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