India and US Aim for a Multi-Stage Trade Deal to Dodge July Tariffs
India Seeks Three-Stage Trade Deal with US to Avoid Tariff Hikes
India is playing a strategic game, aiming to strike a multi-stage trade deal with the US before a looming July deadline that could see new reciprocal tariffs imposed by President Donald Trump. Indian officials, speaking to Bloomberg on condition of anonymity, revealed that they’re hoping to seal an interim agreement by July to avert these potential trade penalties.
Easing Trade Barriers: The First Step
This initial agreement is expected to focus on easing access for industrial goods and certain farm products. It might also address other trade hurdles, such as strict quality control measures currently in place. The officials emphasized that the talks are ongoing and haven’t reached a final agreement with the US on this three-stage approach.
Commerce Minister’s Mission to Washington
Indian Commerce Minister Piyush Goyal is currently in Washington for a four-day visit, meeting with key US trade officials, including US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. The aim is to accelerate the negotiations and move the deal forward.
Second Stage: A Larger Agreement in the Fall?
The second stage of the deal, according to Indian officials, envisions a more comprehensive and detailed agreement. This could be finalized between September and November, potentially coinciding with a possible visit by President Trump to India for the Quad leaders’ summit. This stage is expected to address 19 key areas previously agreed upon by both countries in April.
Full Deal: Congressional Approval Needed
The final stage of the deal would involve a fully comprehensive agreement. However, this stage would require approval from the US Congress, making it a longer process. Indian officials suggest this final stage might not be completed until next year.
Early Trade Gains: A Priority for India
India was one of the first countries to initiate trade talks with the US after Prime Minister Modi’s visit to the White House in February, shortly after President Trump took office. Both leaders committed to boosting trade and aiming to finalize the initial phase of the deal by fall. Since then, India has been actively pursuing early trade gains before the looming July deadline.
