ISLAMABAD (PEN) : Trade negotiators from the United States and India are intensifying efforts to finalize a tariff-reducing agreement ahead of former President Donald Trump’s July 9 deadline. The development follows Trump’s recent announcement of a new trade pact with Vietnam that slashes tariffs on Vietnamese goods to 20%, down from a previously threatened 46%.
India Resists Pressure on Key Agricultural Imports
Sources familiar with the negotiations said that while progress has been made, critical sticking points remain—particularly over U.S. agricultural and dairy imports. Indian officials have firmly opposed reducing tariffs on genetically modified corn, soybeans, wheat, and rice, citing domestic agricultural sensitivities.
One Indian commerce ministry official emphasized, “The government doesn’t want to be seen as surrendering the interests of farmers—a strong political group in the country.”
However, India is reportedly open to concessions in other areas, including lowering tariffs on medical devices, automobiles, energy products, and select fruits such as walnuts and cranberries.
U.S. Pushes for Strategic and Economic Gains
A U.S. source with direct knowledge of the discussions noted that “there’s been intense and constructive effort to close a deal,” adding that negotiators have been advised to prepare for a potential announcement.
“There are indications that they are close,” the source said, highlighting the strategic value of the deal in addition to its economic benefits.
Speaking to reporters aboard Air Force One, Trump said he was optimistic about the outcome: “I could reach a deal with India that would cut tariffs for both countries and help American companies compete in India’s market of 1.4 billion consumers.”
Wider Trade Strategy Under Review
The India negotiations are part of Trump’s broader trade strategy, which recently saw a dramatic tariff cut for Vietnam. Meanwhile, tensions with Japan remain unresolved, with Trump warning of a possible 30–35% duty on Japanese goods, exceeding the 24% tariff announced in April.
Both the U.S. Trade Representative and India’s embassy in Washington declined to comment on the status of the ongoing negotiations.
