A team of negotiators from the U.S. government will visit New Delhi in the second half of August to hold the next round of talks for a trade agreement, a senior government official said on July 26.
The timing of the visit by the American negotiators has dimmed the hopes of a mini deal between Indian and the US, as the pause on the 16 percent tariffs to be imposed on India ends on August 1.
"We are prioritising India's national interest over deadlines. Free trade agreements are deals that once sealed last for decades. So, it has to be a deal that is mutually beneficial. India won't budge on opening its sensitive sectors such as agriculture and dairy. A team of US officials is scheduled to arrive in the second half of August," said a senior government official requesting anonymity.
U.S. Treasury Secretary Scott Bessent told CNBC on July 21 that the Trump administration was more concerned with the quality of trade agreements than their timing. Asked if the deadline could be extended for countries in talks, he said it was up to Trump.
The fifth round of talks between the two countries concluded last week in Washington. Both sides are now working towards finalising the first tranche of the agreement by the Fall, by September or October. To be sure, the first tranche is not the same as a mini deal, which India has been hoping to seal as a short-term measure to get relief from the steep tariffs imposed by the US.
India is seeking relief from higher tariffs on steel, aluminium and automobiles, but the US is resisting it. The US has significantly increased tariffs on imported steel and aluminum, raising them to 50% from 25%, effective June 4, 2025. Besides, it has also implemented a 25% tariff on imported automobiles and certain auto parts to protect its domestic industries.
Talking to reporters on July 26, Union Commerce and Industry Minister Piyush Goyal said discussions with the United States on the proposed bilateral trade agreement are progressing swiftly.
Goyal said that the India-UK comprehensive economic trade agreement (CETA) signed on July 24 is a gold standard of trade deals done by India. But when asked if the India-UK deal will be a blueprint for the country's talks with the US, he said "every free trade agreement stands on its feet". "Every trade agreement is negotiated based on the circumstances in each country. Our focus is always on India getting preferential access over competition," he said.
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