US-India Trade Talks Near Deadline Amid Potential 20-25% Tariffs

The United States and India are intensifying negotiations on a bilateral trade agreement with a critical round of talks scheduled for late August, aiming to resolve tariff disputes before an August 1 deadline. The key sticking points include India's reluctance to reduce tariffs on agricultural goods such as dairy and genetically modified crops, while the US seeks concessions on industrial and agricultural products. India faces the possibility of temporary US tariffs ranging from 20% to 25% on some exports if an interim deal is not reached, although both sides remain cautiously optimistic about reaching a partial agreement by fall. US Trade Representative Jamieson Greer emphasized the need for further negotiations, highlighting President Donald Trump's preference for good deals over quick deals. Despite challenges, India has made tariff offers and is working to ease non-tariff barriers, while trade between the two nations reached approximately $129 billion in 2024. A US delegation is expected to visit India in mid-August to continue talks, with hopes to finalize a comprehensive trade pact by September or October.