India and U.S. Mini Trade Deal Faces Delay Beyond August 1

A proposed mini trade deal between India and the United States is unlikely to be finalized before the August 1, 2025, deadline, according to recent reports. Negotiations, ongoing since June, have hit obstacles, particularly over tariff concessions and market access. India is seeking relief from the U.S.’s proposed 26% tariffs on its exports, while offering limited concessions on select agricultural products like pecans and blueberries. However, sensitive sectors such as dairy and genetically modified crops remain points of contention, with India prioritizing the protection of its farmers.

The delay stems from complex discussions involving labor-intensive sectors like textiles and leather, where India seeks better market access. The U.S., in turn, is pushing for reduced tariffs on its industrial and agricultural goods. Posts on X reflect mixed sentiments, with some users expressing optimism about ongoing talks, while others note the challenges of aligning both nations’ interests. Indian Commerce Minister Piyush Goyal has emphasized that any agreement will prioritize national interests, signaling a cautious approach.

If no deal is reached by August 1, India could face higher tariffs, potentially impacting its $129 billion bilateral trade with the U.S. Negotiations for a broader trade agreement are expected to continue later this year, with both sides aiming for a balanced outcome.

Published in SouthAsianDesk, July 22nd, 2025

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