India-US Trade Talks Hit A Rough Patch As Deadline Nears

The much-anticipated India-US interim trade deal may miss its July 9 deadline, with talks hitting a rough patch over key unresolved issues.

Sources indicate that no more formal rounds of negotiations are scheduled, and a deal will materialise only if the two sides are able to bridge critical gaps informally in the next few days.

While both countries have been pushing for a limited “mini-deal” focused on goods trade and tariff reductions, discussions have stalled over agriculture and dairy access, where India is unwilling to yield ground. India has made it clear that sensitive sectors like dairy and certain agri products are off the table, a senior official said.

Even within the narrowed scope of the proposed agreement, exemptions for Indian exports facing high US duties, like steel, aluminium and auto components, are unlikely to be granted at this stage. New Delhi is pressing for more meaningful market access in labour-intensive sectors such as textiles, footwear, and leather, and has communicated that it will not sign a deal that does not deliver sustained preference in these areas.

Despite earlier optimism, the interim pact now hangs in the balance. While the door isn’t shut, both sides have limited time to salvage a face-saving outcome ahead of the July 9 tariff pause deadline.