India, U.S. Near Interim Trade Pact Ahead Of July Tariff Deadline

India and the United States are close to finalising an interim trade agreement, with negotiations entering a crucial phase before Washington’s temporary 10% import tariff window expires on July 24. The talks have increasingly focused on preserving India’s export competitiveness while advancing broader trade objectives between the two countries.

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Speaking at an event on Capitol Hill organised by the Foundation for India and Indian Diaspora Studies, U.S. Deputy Assistant Secretary of State Bethany Poulos Morrison said the two sides were “very, very close” to concluding what Washington has described as a historic bilateral trade arrangement, according to PTI.

She said Prime Minister Narendra Modi and U.S. President Donald Trump were prioritising outcomes over symbolism. “We’re not measuring it by meetings. We’re measuring it by results,” Morrison said while referring to the negotiations initiated earlier this year.

July Deadline Brings Urgency

The discussions have gained momentum as U.S. Trade Representative Jamieson Greer holds meetings in New Delhi with Commerce and Industry Minister Piyush Goyal. Both countries are seeking to conclude a limited agreement before the temporary 10% U.S. tariff on imports from trading partners expires on July 24.

The latest push follows the meeting between Modi and Trump on the sidelines of the G7 summit in France on June 17. Their discussions came after chief negotiators from both countries met in New Delhi from June 2 to June 4.

An earlier framework announced in February had envisaged lower tariffs on Indian exports in return for reduced duties on American industrial and agricultural products. However, subsequent changes in U.S. trade policy and court developments prompted both sides to revisit parts of the arrangement.

Market Access And Export Advantage

India’s priority remains securing better access for its exports relative to competing economies, particularly Vietnam and several ASEAN countries.

Under the proposed framework, New Delhi has offered tariff concessions on U.S. industrial goods and selected agricultural products, including soybean oil, tree nuts, fresh and processed fruits, red sorghum, dried distillers’ grains, wine and spirits.

India has also indicated plans to purchase $500 billion worth of American energy products, aircraft, technology equipment, coking coal and precious metals over the next five years.

Morrison said the Trump administration remained committed to “Mission 500”, which aims to raise bilateral trade between the two countries to $500 billion by 2030.

Broader Economic Relationship Expands

According to official data, the U.S. was India’s second-largest trading partner in FY26. India’s exports to the U.S. rose 0.92% to $87.3 billion, while imports increased 15.95% to $52.9 billion. The trade surplus narrowed to $34.4 billion from $40.89 billion a year earlier.

Morrison also noted that Indian companies announced $20 billion of investment commitments at the recent SelectUSA Investment Summit, including $1.1 billion in immediate investments. She added that bilateral hydrocarbon trade has expanded to $14.4 billion since 2025.

With the July deadline approaching, both countries are working to convert months of negotiations into an initial agreement that could serve as the foundation for a wider trade partnership.