India has adopted a firmer position on agricultural issues as trade negotiations with the United States enter a decisive stage, according to a source familiar with the matter.
If the discussions fail, New Delhi could face a 26% reciprocal tariff that the U.S. plans to implement after July 9. Washington is also pursuing trade agreements with other countries, which could erode India’s current tariff advantage if those deals succeed.
A high-level Indian delegation, led by the chief negotiator and special secretary in the commerce department, has been in Washington, DC since late last week for in-person talks expected to continue for two to three more days. These negotiations are seen as crucial, as the 90-day suspension on country-specific tariffs announced by the U.S. in April expires on July 9.
In its April 2 announcement, the Trump administration introduced reciprocal tariffs, including a 26% levy on Indian exports, while retaining a 10% universal tariff. The 90-day pause was granted to allow room for negotiation.
India is seeking removal of the reciprocal tariffs and reduced U.S. duties on labour-intensive exports like garments and leather goods. However, a major sticking point remains Washington’s demand for lower Indian tariffs on agricultural imports a sensitive issue for New Delhi.