India attempting for U.S. commerce deal by July 8 deadline

A workforce of negotiators from India is within the U.S. for no less than a two-day journey to conduct closing negotiations for a ‘mini commerce deal’ earlier than the July 8, 2025 deadline elapses, The Hindu has learnt. The prime objects on the agenda, and the primary hindrances to an settlement, are the entry of genetically-modified (GM) crops and cow milk into India, and the removing of the reciprocal tariffs imposed by the U.S.. 

This comes quickly after U.S. President Donald Trump on June 26 hinted at a “very massive” deal developing with India. 

“We’re having some nice offers. We have one developing, possibly with India, a really massive one, the place we’re going to open up India,” Mr. Trump mentioned throughout an occasion on the White House selling passage of the GOP’s tax and spending cuts laws on June 26, 2025.

July 8, 2025, marks the final day of the 90-day pause Mr. Trump had allowed on the ‘Liberation Day’ larger tariffs he had imposed on imports from different nations, together with India. If that date elapses with out both an extension or a commerce deal between India and the U.S., then Indian exports to the U.S. shall be topic to 26% tariffs from July 9, 2025 onwards.

Tussle over GM crops, cow milk

According to sources conscious of the negotiations between the 2 nations, the U.S. and India are at present at loggerheads over the problems of the import of GM crops and cow milk into India. 

“Both of those points are very delicate for India,” the supply defined. “GM crops shall be a giant hit to our home farmers,” they added.

India has not opened up both of those sectors in any of the free-trade agreements it has to this point signed with any nation.

Also Read | India and U.S. can solely finalise ‘mini’ commerce deal this yr: Sources

Seeking concessions

The Indians, then again, shall be attempting to push the U.S. to waive the Liberation Day tariffs for India, and likewise cut back the elevated tariffs it had levied on metal and aluminium imports. 

Overall, the U.S. is searching for responsibility concessions on sure industrial items, vehicles, particularly electrical automobiles, and wines, petrochemical merchandise, dairy, and agricultural objects equivalent to apples, tree nuts and genetically modified crops.

India’s broad calls for are concessions for labour-intensive sectors equivalent to textiles, gems and jewelry, leather-based items, clothes, plastics, chemical compounds, shrimp, oil seeds, grapes, and bananas.

The final Union Budget already noticed India decreasing tariffs on all kinds of things equivalent to shrimp and shrimp paste, high-end bikes and vehicles, and a few sorts of electronics. 

The article has been edited to right a factual error