India, US Continue Interim Trade Talks After USTR Greer Concludes New Delhi Visit

Negotiations advance toward an interim trade agreement as both sides work through tariff, agriculture and market access issues ahead of the July 24 deadline.

U.S. Trade Representative Jamieson Greer met Commerce and Industry Minister Piyush Goyal during his visit to review progress on the proposed interim India–US trade agreement. Discussions also included officials from both countries as negotiations continued through technical and ministerial-level engagements.

According to sources, both negotiating teams have made substantial progress in recent months, but additional work is required before the interim agreement can be finalised.

Tariff Changes Prompt Revision of Earlier Framework

The current negotiations have gained urgency following developments in U.S. trade policy. Earlier this year, the U.S. Supreme Court struck down the legal basis for a number of reciprocal tariffs, requiring Washington to revise its tariff framework.

Before the ruling, India had agreed to a framework deal on February 2, under which the United States proposed reducing tariffs on Indian goods to 18 per cent, while India agreed to reduce tariffs on selected U.S. industrial and agricultural products, with firm positions on genetically modified maize, soyabean and dairy products.

Following the court ruling, the United States introduced a temporary 10 per cent universal tariff on imports from all countries for 150 days, which is scheduled to expire on July 24.

Outstanding Issues Remain Under Discussion

Officials indicated that discussions now focus on revising the earlier framework to reflect the new tariff structure while preserving preferential market access for Indian exports.

At the same time, negotiations continue on agriculture, with Washington seeking greater market access for U.S. agricultural products, including dairy, poultry, fisheries and other farm exports. India has maintained its position on several politically and economically sensitive agricultural sectors.

The discussions also cover U.S. requests concerning tariffs on products including corn, soybeans, ethanol and dairy products, as well as modified feedstock.

Section 301 Investigations Add Complexity

The negotiations are also taking place alongside investigations launched by the United States under Section 301 of the Trade Act of 1974, including an additional 12.5 per cent duty on India and other countries over allegations relating to forced labour inputs.

India continues to contest the legal basis of these investigations while participating in the Section 301 proceedings. Hearings on the revised tariff proposal are scheduled for July 7.

According to the report, India can secure lower tariffs of 10 per cent if it addresses concerns related to forced labour import restrictions. However, officials argue that Indian textile supply chains do not rely on cotton imports from Xinjiang, although Chinese suppliers remain important for synthetic and blended textiles, particularly specialty yarns and performance fabrics.

Focus Shifts Beyond July 24

Officials said that while July 24 remains an important reference point due to the expiry of the temporary tariff regime, the interim agreement itself is not necessarily tied to that date.

The report noted that the more significant challenge will be determining whether a limited interim agreement can subsequently evolve into a broader Comprehensive Bilateral Trade Agreement between India and the United States.