The development comes at a critical juncture, as former US President Donald Trump signals he may not extend the 90-day pause on new tariffs beyond the July 9 deadline.
THE NEWS DOSE OVERSEAS DESK
New Delhi, June 30.UPDATED:11.05AM
India and the United States are on the verge of finalising a long-anticipated bilateral trade agreement, with official sources indicating the deal could be concluded within a week. The development comes at a critical juncture, as former US President Donald Trump signals he may not extend the 90-day pause on new tariffs beyond the July 9 deadline.
Rajesh Agarwal, Special Secretary in India’s Department of Commerce, who is currently in the US leading a high-level trade delegation, affirmed that India is vigorously defending its core interests, particularly in the agricultural sector. “India will safeguard its concerns related to key farm products such as rice, fruits, millets, and wheat,” Agarwal stated during interactions with US stakeholders.
On the industrial front, the proposed deal includes mutual concessions. Agarwal noted that select American automobile manufacturers, including electric vehicle giant Tesla, stand to benefit from specific incentive provisions in the US. Additionally, certain American auto parts and spares are likely to receive expanded market access in India.
In a reciprocal move, Indian auto components are expected to gain relief from existing US tariffs, thereby creating new opportunities for India’s export-oriented manufacturing sector.
The urgency around the deal has heightened in light of Trump’s recent remarks. In a televised interview with Fox News Channel’s Sunday Morning Futures, Trump reiterated his tough stance on trade. “We’ll look at how a country treats us — are they good, are they not so good. Some countries we don’t care, we’ll send a high number out,” he said, alluding to potential tariff hikes on countries that fail to secure trade deals with the US.
The Trump administration had previously introduced the so-called “Liberation Day” tariffs, aimed at resetting global trade terms more favourably for the US. A temporary 90-day pause was announced to allow negotiations, but with the July 9 deadline fast approaching, most countries, including India, are racing against time to avoid punitive measures.
India’s delegation, headed by Aggarwal, is engaged in intense negotiations with officials from the Office of the United States Trade Representative (USTR). While optimism remains about a breakthrough, the broader context is less specific.
So far, the US has managed to finalise only two trade frameworks during the pause period, while deals with several key partners remain in limbo. Trade analysts say the shrinking timeline — and the global economic uncertainty — are increasing the stakes for both sides.
With just days left before the tariff freeze expires, observers say the India-US deal could serve as a model for other nations hoping to strike similar agreements with Washington, especially if it succeeds in balancing domestic priorities with geopolitical pragmatism.
