US-India Trade Tensions Ease as Negotiations Intensify Ahead of July Tariff Deadline

Welcome to India Tariff News and Tracker. Today’s episode covers the latest developments on US-India tariffs and the evolving trade landscape under President Trump’s administration as of June 29, 2025. Earlier this year, President Trump announced sweeping new tariffs as part of his reciprocal trade policy, targeting countries with what he called unfair trade practices. On April 2, Trump declared “Liberation Day” for US trade, unveiling a detailed tariff structure for imports from multiple countries, including a significant 26 percent tariff on Indian goods. This new rate was set to have a broad impact on India’s leading exports to the United States, directly affecting sectors like steel, chemicals, agriculture, and technology. However, in a move designed to facilitate ongoing trade talks and encourage progress in the bilateral relationship, the US suspended the 26 percent tariff for 90 days beginning April 10, instead maintaining a 10 percent basic duty on imports from India. According to the Times of India, discussions have surged ahead as both sides aim to finalize a new trade agreement before the 90-day suspension expires on July 9. According to India Briefing, the US Trade Representative’s annual National Trade Estimate Report highlighted India’s high tariff barriers, noting that in 2023, India’s average applied tariff rate stood at 17 percent, the highest among major world economies. For agricultural imports, the average tariff was a steep 39 percent. The report singled out products like vegetable oils, apples, motorcycles, and automobiles among those facing high Indian tariff barriers. The US’s push for more reciprocal terms comes as trade between the two countries grows, with India now the US’s largest trading partner at $131.84 billion for the 2025 fiscal year, according to CRISIL. The White House and Indian government have both expressed optimism about reaching a comprehensive bilateral trade agreement soon. Vice President Vance and Prime Minister Modi recently announced the Terms of Reference for ongoing talks, aiming to reduce tariff and non-tariff barriers, improve market access, and create opportunities across energy, digital trade, and defense sectors. In the energy segment, India’s rising need for liquefied natural gas offers new partnership opportunities for US exporters. Defense trade is also deepening, with the US continuing as a major supplier to India under programs like INDUS-X. Listeners, as the July 9 deadline approaches, both countries are racing to finalize at least a provisional agreement. India is seeking a complete exemption from newly imposed US retaliatory tariffs, hoping that successful negotiations will boost trade and investment on both sides. Thank you for tuning in to India Tariff News and Tracker. Remember to subscribe for the latest updates on this fast-changing story. This has been a Quiet Please production, for more check out quietplease dot ai. For more check out https://www.quietperiodplease.com/ Av This content was created in partnership and with the help of Artificial Intelligence AI.