India, US Near Interim Trade Deal on Tariffs, Market Access

The United States and India are making steady progress toward an interim Bilateral Trade Agreement (BTA), aiming to finalize the first tranche by late June or by September-October 2025. Recent negotiations focused on tariff reductions, market access for industrial and agricultural goods, non-tariff barriers, digital trade, customs facilitation, and legal frameworks, with early wins achieved but some key issues unresolved. India remains cautious about lowering tariffs on sensitive agricultural products like rice, wheat, and dairy, citing food security concerns, while the U.S. seeks broader market access, especially for farm products and high-value goods such as almonds and pistachios. Both sides agree on the importance of reducing the U.S. trade deficit with India and enhancing economic ties, but tensions persist over proposed tariffs and exemptions, including India's request to exclude steel exports from a 50% tariff. The talks are part of a broader effort to deepen supply chain integration and economic cooperation, with ongoing discussions expected to continue to meet the July 9 deadline related to the pause on reciprocal tariffs imposed by President Donald Trump's administration. Despite challenges, both countries remain committed to concluding an agreement that balances their economic interests and supports increased trade flows.