Article Title: India trying for US trade deal by July 8 deadline
28-06-2025
Economy Current Affairs Analysis
Context
• A team of negotiators from India has been in the U.S. for at least two days to conduct final negotiations for a “mini trade deal” by the July 8 deadline, before “reciprocal tariffs” imposed by the U.S. come into force on July 9, The Hindu has learnt.
• The top items on the agenda, and the main hindrances to an agreement, are the entry of genetically modified (GM) crops and cow milk into India, and the removal of reciprocal tariffs.
• “We’re having some great deals. We have one coming up, maybe with India, a very big one, where we’re going to open up India,” Mr. Trump said during an event at the White House promoting passage of his Republican Party’s tax and spending cuts legislation.
• July 8 is the last day of the 90-day pause Mr. Trump had put on the “Liberation Day” tariffs he had imposed on imports from other countries, including India.
• If that date elapses without either an extension of the pause, or a trade deal between India and the U.S., then Indian exports to the U.S. will be subject to a 26% tariff.
• Sources aware of the negotiations say the U.S. and India are at loggerheads over the import of GM crops and cow milk.
• The Indians, on the other hand, will be trying to push the U.S. to waive the “Liberation Day” tariffs for India, and also reduce the increased tariffs it had levied on steel and aluminium imports.
• Overall, the U.S. is seeking duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, dairy, and agricultural items such as apples, tree nuts, and GM crops.
• India’s broad demands are concessions for labour-intensive sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas
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