India-US Trade Deal May Be Finalised Before July 24, Says Commerce Secretary

Rajesh Agrawal says discussions with the US are progressing while India advances trade agreements with Oman, New Zealand and the European Union

India’s proposed trade agreement with the United States could be finalised before July 24, according to Commerce Secretary Rajesh Agrawal. The discussions are taking place amid changes in the US tariff framework and ongoing negotiations involving multiple global trade partners.

Agrawal stated that continuous discussions are being held with the United States to finalise the trade agreement as soon as possible. He said the current tariff regime includes a uniform tariff that will remain in place until July 24.

“The tariff regime has also changed. At present, there is a uniform tariff that will go on till July 24. I feel before that it will be done,” he said at a media event.

The US had imposed 10% additional tariffs on all trade partners from February 24 under Section 122 of the Trade Act of 1974 after the US Supreme Court struck down reciprocal tariffs on all countries.

According to the report, these tariffs can remain in force for only 150 days.

The US Supreme Court judgement also delayed the trade agreement framework with India as the earlier framework was based on 25% reciprocal tariffs and an additional 25% tariff linked to purchases of Russian oil, which no longer exists. India is now pursuing a deal that provides tariff advantages over competitors.

The report further stated that while Section 122 tariffs may eventually be withdrawn, the US has initiated a probe against key trade partners under Section 301 of the Trade Act to determine whether subsidy-supported overcapacity and the use of forced labour have affected the competitiveness of American industry. Under Section 301, there is no limit on the extent of additional tariffs that the US can impose.

To continue negotiations, an Indian delegation visited the US last month. Next month, a US team led by US Trade Representative Jamieson Greer is expected to visit India for further discussions. US Secretary of State Marco Rubio had also visited India on Sunday.

Agrawal additionally confirmed that the Comprehensive Economic Partnership Agreement (CEPA) with Oman will come into force from June 1. Both sides had signed the agreement on December 18 last year.

He also said that the Free Trade Agreement with New Zealand, signed in April, is expected to become operational in October or November.

Regarding the India-European Union Free Trade Agreement, Agrawal stated that legal review and finalisation work is currently progressing and the agreement is expected to be signed before the end of 2026. He added that the agreement is likely to become operational before the end of the financial year in March 2027.