US-India Interim Bilateral Trade Deal Faces Hurdles Ahead Of July 9 Tariff Deadline

India and the United States are still keen to finalise an interim bilateral trade agreement (BTA) but significant sticking points remain, particularly around agriculture, with the clock ticking toward the July 9 deadline for the end of a 90-day tariff pause.

According to government sources, the U.S. continues to push aggressively for greater market access for its agricultural and dairy products, along with approval for genetically modified (GMO) crops.

However, India has made it clear that it is not open to allowing GMO imports and is also reluctant to broadly open up its agri and dairy markets, citing sensitivities around domestic farmers and food security.

Despite these hurdles, both sides remain keen to strike a limited deal before the July 9 deadline, which marks the expiration of a temporary tariff truce agreed upon earlier this year.

If the deadline passes without a deal, tariffs are expected to revert to April 2 levels, potentially reimposing duties on a range of goods on both sides. However, sources say India will gain in some areas and lose in some, with a competitive edge being retained over rival manufacturing hubs, even if the earlier tariffs snap back into place.

The US delegation visited India between June 5 and 11 for in-depth discussions. It is now India's turn to head to Washington for another round of talks.