Indo-US trade agreement uncertain, deadlock in tariff dispute and dairy talks between 9 July deadline

Last Updated Jul - 02 - 2025, 11:47 AM | Source : Fela News

As the deadline of July 9 is getting closer, the Indo-US trade agreement has reached a state of uncertainty. Negotiations on issues related to tariffs and dairy

As the deadline of July 9 is getting closer, the much-awaited Indo-US trade agreement appears to be hanging in the balance, which has been entangled by the tensions from tariff (fee) and differences in various fields. US President Donald Trump has expressed optimism over the agreement and indicated that the agreement may be far less with tariffs, which will make a fair competition between the two countries possible.

Trump recently said, "I think we will have an agreement with India… an agreement in which we can go and compete." This means that the US wants more market access to areas that are currently limited by India. The hurry to finalize the agreement is associated with the 90 -day tariff exemption declared by Trump, which is ending on 9 July. If there is no formal agreement by this time limit, then a heavy duty of 26% can be applied to Indian goods, which will also limit further interactions. At the heart of the deadlock lies India’s dairy sector, which it has historically protected and never opened to foreign trade. The United States is pushing for reduced duties in this area, along with agricultural products such as apples, tree nuts, and genetically modified crops. On the other hand, India is seeking enhanced access for its textiles, gems and jewellery, leather goods, and food products like shrimp, bananas, grapes, and oilseeds.

An Indian delegation, led by chief negotiator Rajesh Agrawal, is currently in Washington and has extended its stay in hopes of sealing the deal. Despite the sticking points, both sides are under pressure to deliver a balanced agreement that satisfies domestic industries while strengthening strategic ties.

With time running out and critical interests at stake, the India-US trade deal remains a high-stakes negotiation. Whether the two democracies can overcome their differences and sign a deal before the July 9 deadline will shape the future of their economic relationship.