Sectoral tariffs on steel, aluminium, and automobiles are unlikely to be included in the interim trade deal between India and the United States, according to government sources. The deal is said to be finalised with no further negotiation rounds remaining.
This comes as President Donald Trump announced that the US would notify partner countries of new tariffs by July 9, with implementation beginning August 1. Trump described the upcoming notifications as final and non-negotiable.
Despite past tensions—where Trump labelled India a "tariff king" and had imposed a 26% tariff on Indian goods as part of his “Liberation Day” policy—there appears to be progress. That tariff was temporarily suspended for 90 days to allow trade talks to proceed.
Key outcomes and sticking points:
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India has resisted US pressure to lower duties on sensitive sectors like dairy, rice, wheat, and genetically modified crops, citing protection for its large farm economy and over 80 million dairy sector workers.
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India has offered tariff concessions on almonds, pistachios, and walnuts, and is open to preferential access in areas like energy, defence, and autos.
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India is pushing for greater US market access for its labour-intensive exports like textiles, gems, jewellery, leather, and chemicals.
Commerce Minister Piyush Goyal emphasized that any trade pact would only be signed if India’s strategic interests were fully safeguarded.
Finally, Prime Minister Modi and President Trump had earlier agreed to conclude the first phase of the trade deal by autumn 2025, and aim to grow bilateral trade to $500 billion by 2030, up from $191 billion in 2024.
