3 min readNew DelhiJul 5, 2025 03:12 AM IST
First published on: Jul 4, 2025 at 07:59 PM IST
The India-US interim trade deal remains elusive with less than a week to go before the July 9 reciprocal tariff pause runs out. Indian negotiators returned Friday, a government official said, adding that the negotiations are not contingent on any specific date and that both countries will sign a deal only if it is mutually beneficial.
“The trade negotiators have just returned. The talks are ongoing, but the deal is not contingent on any date. India’s key interests are sustained access for labour-intensive goods such as textiles and footwear. Auto component exports are also a key interest,” a government official said on being asked about the India-US negotiations.
According to the official, the US is not willing to give concessions on steel to any country and India has imposed safeguard duties to protect its domestic industry. “We are focusing on areas where we have a competitive edge. Despite the tariffs, production in the US could be a challenge,” the official said.
Reiterating that “all possibilities are open”, the official said the trade deal will be signed when it is mutually beneficial and not under “deadline pressure”.
“India is not going to face Vietnam-type tariffs as India is not involved in rerouting third-country goods. Labour and services are not under discussion,” the official said.
The Indian Express had reported last month that India and the US continue to disagree on sensitive sectors such as agriculture and automobiles. This comes as the US is pushing several countries including Japan, India and Vietnam to give more access to agricultural products. Japan and India are resisting such demands.
Meanwhile, US President Donald Trump has said Washington will begin sending letters that will outline reciprocal tariff rates for each country, starting Friday.
The Indian official declined to comment on this.
“My inclination is to send a letter out and say what tariffs countries are going to pay. We have more than 170 countries. And how many deals can you make? And you can make good deals, but they’re very much more complicated,” Trump said.
“I’d rather just do a simple deal where you can maintain it and control it. You’re going to pay a 20 per cent or 30 per cent tariff, and we’re going to be sending some letters out, starting probably tomorrow, maybe 10 a day, to various countries, saying what they’re going to pay to do business with the US,” he said.
Trump has announced a number of trade deals, including with Vietnam and China, and said late last month that the US and India “may” sign a deal that will “open up India”.
The US had announced steep tariffs on several Asian countries, 26 per cent on India, 36 per cent on Thailand and 32 per cent on Indonesia. Trump announced that the trade deal with Japan had hit a roadblock and imposed a 24 per cent duty on Japan.
Reciprocal tariffs of 25 per cent were imposed on South Korea, 24 per cent on Malaysia, and 20 per cent on the European Union. Notably, Trump announced 32 per cent tariffs on Taiwan, a key chip manufacturing hub.
The official said the US is not willing to give concessions on steel to any country and that India has imposed safeguard duties to protect its domestic industry. (File Photo: Reuters) 
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