India is still working within the July 8 deadline for finalizing a trade deal with the United States, not the extended August 1 deadline that applies to countries that have received formal tariff letters from U.S. President Donald Trump, according to Indian government sources. They added that a “mini deal” between the two nations could be announced within a day or two, but stressed that India would not proceed if the terms are not favorable.

 

President Trump’s 90-day suspension of tariffs—originally announced on April 2 as part of the so-called ‘Liberation Day’ tariffs—will end at midnight on July 8. Unless a deal is reached, India faces a 26% tariff on its exports to the U.S. under that framework.

 

Meanwhile, Trump has already issued formal tariff notifications to 14 countries including Japan, South Korea, Malaysia, South Africa, Indonesia, and others. For these countries, the new tariff regime will take effect from August 1, slightly later than the previously anticipated date of July 9.

 

“The August 1 deadline applies only to countries that received letters,” a senior Indian official told *The Hindu*. “Since India hasn’t received such a letter, we are still negotiating under the July 8 timeline.” Another official involved in the talks said that while a deal may be reached by July 8 or shortly thereafter, India could still take advantage of the August 1 extension if the current terms are unsatisfactory.

 

On Tuesday (July 8, 2025), President Trump said in Washington that the U.S. has been in talks with several countries over trade issues. “We’ve made deals with the UK and China, and we’re close to a deal with India,” he noted, adding that those countries with which agreements seem unlikely have been sent letters.

 

Negotiations between India and the U.S. have been ongoing, with both sides exchanging delegations over the past few months. The Indian team, led by Special Secretary Rajesh Agrawal from the Ministry of Commerce and Industry, recently returned from their second round of discussions in Washington.

 

Sources say India has submitted its final proposals, and the next move lies with the U.S. India is not expected to make further concessions. Key sticking points remain genetically modified (GM) crops and dairy imports. The U.S. wants India to permit imports of GM animal feed like soybean meal and distillers dried grains with solubles (DDGS)—a by-product of ethanol production—which India has been reluctant to approve due to its broader resistance to GM products. Additionally, India continues to oppose U.S. demands to open its market to American cow milk.