The much awaited mini trade deal between India and the United States is likely to be announced by late tonight. According to sources, both countries have agreed to the custom tariff, and the average tariff rate will be around 10%. The agreement is coming before the 90-day tariff exemption of US President Donald Trump, ending July 9, 2025.
Trump had announced the implementation of a mutual tariff of 26–27% on several countries including India on 2 April, but was postponed for 90 days. Under this mini deal, India can receive an annual quota for some labor-dominated products, such as textile, garments and low tariffs on leather goods. On the other hand, some agricultural products in the US, such as pecan nuts and blueberries, may apply to tax rates. However, India has excluded sensitive areas such as dairy and agriculture from this agreement.
Commerce Minister Piyush Goyal clarified that India does not compromise under time limit pressure and prioritizes national interests. Last month, the Indian delegation in Washington held intensive talks under the leadership of Special Secretary Rajesh Aggarwal. Both sides discussed issues such as the original rules, certification, and dispute resolution. Trump had predicted a “big agreement” with India, which would promote bilateral trade.
This deal is important for India, as 26% tariffs may affect the trade deficit of $ 45 billion. Experts believe that the agreement will pave the way for a broad bilateral trade agreement (BTA), whose talks will begin after July 9. The market has given a positive response to this news, and the Sensex saw a jump of 1,300 points.
This agreement is an important step towards strengthening Indo-US trade relations, but more discussion on complex issues such as agriculture and GM crops is still needed.
