As the July 9 deadline for the reimposition of the U.S.’ reciprocal tariffs approaches, a potential trade deal still remains challenging as an agreement between India and the U.S. on agriculture and dairy remains elusive, according to sources.
“We want to do a deal before July 9, but agriculture and dairy are emerging as challenges,” a source which is aware of the developments said.
However, despite the government’s keenness to conclude a deal with the U.S. before July 9, it is not “desperate” to do so, they said. “Even if we miss the deadline of July 9, what will happen, tariffs will go back to April 2 levels,” the source said.
“So, India will lose in some areas, gain in some, because it is not like U.S. trade deals are happening with other countries. We are the only country that is negotiating so elaborately for a trade deal with U.S.” Even when it comes to a “mini deal”, the government is still looking into what can be included and what can be excluded.
“But there are challenges to meet the July 9 deadline given there are differences,” the source explained. “Our team will go to the U.S. for the next round of in-person meeting to discuss both the mini deal and the first tranche of the Bilateral Trade Deal (BTA), the timeline for which is Fall.”
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