India and the United States are intensifying efforts to finalize a tariff-reducing trade agreement by July 9, 2025, following the US announcement of a deal with Vietnam that lowered tariffs on Vietnamese goods from 46% to 20%. Indian negotiators, stationed in Washington since late June, are working to secure concessions, particularly after President Donald Trump’s April 2025 “Liberation Day” tariffs threatened a 26% duty on Indian exports, later reduced to 10% to allow talks.
Disagreements persist over US demands for access to India’s dairy and agricultural markets, with India’s commerce ministry cautious about impacting its farming sector, a key political constituency. The US-Vietnam deal, which allows duty-free US exports to Vietnam, has heightened pressure on India to secure similar terms. Posts on X reflect optimism about a potential mini-trade deal, with some users suggesting India may gain concessions on IT and pharmaceutical exports, though these claims remain unverified.
India’s push aligns with its broader trade strategy, as seen in earlier 2025 talks with the US on defense co-production and energy ties. However, challenges remain, as India balances domestic agricultural interests with the need to strengthen economic ties with its strategic partner amid global trade uncertainties.
Published in SouthAsianDesk, July 3rd, 2025
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