India-US Trade Deal Update: Talks on first tranche in final stage, both sides soften their stance, say sources

In the latest in US-India trade talks, discussions between senior delegations from both sides on the first tranche of a mini trade deal has entered the final stage, with both sides keeping in mind the interests of both countries, Zee Business learned from sources.

With both countries having softened their stance somewhat, hopes are building up that the Donald Trump 2.0 administration's tariffs will remain in the lower tax bracket, according to the sources.  

The development assumes significance as US President Donald Trump's August 1 reciprocal tariff deadline approaches.

India-US set to seal trade pact soon as August 1 Trump tariff deadline looms?

India is pushing for an interim bilateral trade agreement to preempt steep tariff hikes from August 1. On Tuesday, Trump said that the US is making notable progress in gaining access to India’s markets, asserting that his tariffs have helped the US overcome barriers that previously hindered American businesses.

A senior trade delegation from India reached Washington DC on Monday for a fresh round of negotiations to form a mutually beneficial mini trade deal, ahead of a looming additional 16 per cent duty on top of a baseline 10 per cent tariff on the import of Indian goods into the US, taking the total duty to 26 per cent. 

Earlier, Commerce Minister Piyush Goyal confirmed that negotiations were proceeding fast pace, hoping for a mutually beneficial interim trade pact on areas like automobiles and agriculture. "Negotiations are going on at a very fast pace and in the spirit of mutual cooperation so that we can come out with a win-win trade complementing agreement with the United States," he said on Monday.

Unlike several other nations, India has not received Trump’s aggressive “tariff letters” outlining new trade penalties, and is reportedly seeking more favourable terms than those granted to Indonesia in order to gain a competitive edge.

Meanwhile, Trump has said that a deal with India is “very close”, alongside discussions with the European Union, emphasising his use of tariffs as leverage to open foreign markets.