President Donald Trump has indicated that a trade agreement between the US and India is on the horizon, promising “much less tariffs” to facilitate competition between the two nations. Trump stated that the deal would be different, allowing for greater market access. The announcement comes as both countries are negotiating a Bilateral Trade Agreement (BTA) with a critical deadline of July 9 for a 90-day pause on tariff escalations. Negotiations have been extended as both nations work to finalize an interim trade agreement before the deadline. The failure to reach an agreement would reinstate suspended 26% reciprocal tariffs. India has taken a firm stance on agricultural matters, which has created a sensitive political situation due to the dominance of small-scale farmers. The US is pushing for reduced duties on agricultural products, while India seeks better access for its labor-intensive exports. The goal is to more than double bilateral trade from the current $191 billion to $500 billion by 2030.
