India, U.S. in Final Push for Trade Deal Before July 8 Deadline

 India, U.S. in Final Push for Trade Deal Before July 8 Deadline

New Delhi/Washington, D.C. – With a critical July 8 deadline looming, Indian and U.S. negotiators are in intense, last-minute talks to finalise a limited trade agreement that could prevent steep U.S. tariffs from hitting Indian exports.

Indian Commerce and Industry Minister Piyush Goyal has been leading the push, holding high-level discussions with U.S. Commerce Secretary Howard Lutnick. A delegation of Indian negotiators has been stationed in the U.S. for over two days, trying to iron out the last sticking points before the clock runs out.

Unless a deal is struck by July 8—or unless the U.S. decides to extend a temporary freeze on the tariffs—Indian goods could face a 26% duty starting July 9 under what Washington has dubbed the “Liberation Day” tariffs.

The biggest obstacles to the agreement remain deeply contentious: the U.S. is pressuring India to open its market to genetically modified (GM) crops and dairy products derived from cow’s milk. Both are politically and economically sensitive issues in India, where policymakers fear such imports could severely impact domestic farmers and small-scale producers.

“These are red-line issues for India,” a source familiar with the negotiations told The Hindu. “Opening the door to GM crops would have a significant impact on our farming community.”

India has consistently kept GM crops and dairy products out of all its free trade agreements to date, reflecting strong domestic resistance.

From the U.S. side, the demands include lower duties on a range of industrial and agricultural products, including electric vehicles, petrochemicals, wines, and dairy. In return, India is seeking relief for its labour-intensive export sectors, which include textiles, garments, leather, gems and jewellery, plastics, chemicals, seafood like shrimp, and a range of agricultural products such as bananas, grapes, and oil seeds.

The urgency of the talks increased after U.S. President Donald Trump, at a White House event on June 26, teased the possibility of a significant trade agreement with India. “We have one coming up, maybe with India, a very big one, where we’re going to open up India,” he said, linking the deal to broader Republican efforts on economic policy.

The July 8 deadline marks the end of a 90-day pause President Trump had granted on implementing tariffs against several trading partners. If no agreement—or extension—is reached by then, Indian exporters will face a steep blow as the new tariff regime kicks in.

As both sides scramble to reach common ground, the outcome could shape the next phase of India-U.S. trade relations—and either avert or trigger a new round of economic tensions.