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India Aims To Bypass Reciprocal Tariffs Via Mini Deal With US By July

Commerce Minister Piyush Goyal is currently leading an Indian delegation for trade talks in Washington.

<div class="paragraphs"><p>India was among the first nations to begin formal trade talks with the US following PM  Narendra Modi’s visit to the White House in February 2025. (Photo:&nbsp;Narendra Modi/X)</p></div>
India was among the first nations to begin formal trade talks with the US following PM Narendra Modi’s visit to the White House in February 2025. (Photo: Narendra Modi/X)

Indian negotiators are aiming for a complete exemption from the 26% reciprocal tariffs imposed by the US as an interim trade deal is expected to be signed before the tariff pause period expires.

Talks for a mini trade deal are underway and aimed for conclusion before July 9 to avoid reciprocal tariffs, according to top government sources aware of the matter. While the US cannot bring tariffs lower than the most-favoured-nation rate without approval from the US Congress, an exemption is still possible.

alongside chief negotiator Rajesh Agrawal. While Goyal has already met US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, another meeting might be on the cards to seal the deal.

As part of the bilateral trade agreement, the first tranche of which is set to be signed by October this year, it will likely include digital goods and services as well.

India is also batting for a minimum Import price or import quotas in sensitive sectors like dairy and agriculture as part of the deal, adding that a reduction or removal of the 5–7% basic customs duty for its exports of labour-intensive products like leather is also among the demands put forth.

India is offering market access to the US agri sector, provided that it only sends nongenetically-modified crops. Regulatory norms in India will not allow the import of GM produce like alfalfa hay. The US is also seeking concessions in certain industrial goods, automobiles, wines, petrochemical products, dairy and other agricultural products, which are currently under discussion.

The negotiations are a part of the countries' efforts to expand bilateral trade to $500 billion by 2030, as envisioned in the BTA. The terms of reference for the BTA have been finalised, which include around 19 chapters covering issues like tariffs, goods, services, rules of origin, non-tariff barriers and customs facilitation.

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