"India trade agreement nearing close, Bessent confirms"
The United States and India are on the verge of finalising an interim trade deal as early as this week, according to recent reports. The agreement, which is seen as a preliminary step towards a more comprehensive bilateral trade agreement, aims to help India avoid levies imposed by the Trump administration.
The news about the potential interim trade deal between the two nations was first reported by the Financial Times (FT). Treasury Secretary Scott Bessent announced the development in a statement to Fox News, suggesting a positive progression in U.S.-India relations, specifically in the context of trade negotiations.
However, the statement did not provide specific details about the terms of the potential interim trade deal or a timeline for its finalisation. The deal is expected to be one of the first between the U.S. and a major trading partner and is targeted for completion by autumn 2025.
Key points in the negotiations include India's firm stance on not compromising on the interests of Indian farmers, with red lines on agriculture, genetically modified (GM) crops, and dairy market access. The U.S., on the other hand, is seeking broader market access in sectors such as automobiles, whisky, apples, corn, and soy, along with demands to allow GM crops and cattle feed.
India also aims for the elimination of reciprocal tariffs and additional duties on steel, aluminum, and auto components, as well as assurances against future tariff impositions. Discussions are ongoing on textile trade rules of origin, with India seeking lower tariffs similar to those granted to other free trade agreement partners.
The deal is expected to lower tariffs on American imports, although the exact details of these reductions have not been disclosed. The levies imposed by the Trump administration on India are set to rise sharply next week, adding urgency to the negotiations.
White House Press Secretary Karoline Leavitt confirmed that the deal is expected to be finalised soon, with President Trump having called it a "very big deal" that will "open up India." However, the statement by Scott Bessent did not indicate whether the interim trade deal will be followed by a comprehensive agreement or address the levies imposed by the Trump administration or their potential impact on the trade deal.
In summary, the U.S.-India interim trade deal is on the verge of being concluded this week, with significant progress made but sensitive issues—particularly in agriculture—still being negotiated to protect Indian interests while opening new trade opportunities. The deal is a significant development in U.S.-India trade relations, but the exact terms and timeline for its finalisation remain unclear.
[1] Financial Times, "U.S. and India close in on interim trade deal," July 5, 2025. [2] Reuters, "U.S.-India trade deal: India holds firm on agriculture, GM crops, and dairy market access," July 6, 2025. [3] Bloomberg, "U.S.-India trade deal: Discussions ongoing on textile trade rules of origin," July 7, 2025. [4] White House Press Briefing, Transcript, July 8, 2025.
- The interim trade deal between the United States and India, which is currently under negotiation, involves discussions on various topics such as finance, business, politics, and general news, with key points including agriculture, genetically modified crops, dairy market access, autos, and steel tariffs.
- The finalization of the U.S.-India interim trade deal might have potential implications on the financial and business sectors of both nations, as well as on the broader political landscape, given the expected lowering of tariffs on American imports and the ongoing negotiations on market access and textile trade rules.
