India and the United States are expected to conclude an interim trade agreement prior to July 8, as New Delhi seeks a complete exemption from the additional 26% reciprocal tariff that Washington imposed earlier this year, according to media reports referencing unnamed Indian officials. India is in negotiations to protect its sensitive sectors — including agriculture and dairy — from the effects of increased market access. The official indicated that this might entail the introduction of quotas or the establishment of minimum import prices to safeguard domestic producers. Although the repeal of the baseline tariffs necessitates approval from the U.S. Congress, the administration maintains the power to eliminate the additional reciprocal tariffs for several nations, including India. The U.S. had declared the 26% tariff on Indian goods on April 2 but temporarily postponed its enforcement for 90 days — a grace period that concludes on July 9. In the meantime, the original 10% baseline tariff on Indian exports continues to be in effect. Both countries have also concurred to finalize the first phase of a more extensive trade agreement by September or October of this year. The long-term objective is to more than double bilateral trade volumes to $500 billion by 2030. Despite persistent challenges — particularly India’s stringent regulatory position on genetically modified crops — New Delhi has shown a willingness to import certain non-GM agricultural products from the U.S., such as alfalfa, as part of the ongoing discussions, it has been reported.
