India U.S. Tariff Pact Races Toward 10% Deal Before Trump’s July 9 Deadline

Indian and U.S. officials began two days of closed-door trade negotiations in New Delhi on Thursday, with both sides working to finalize an interim deal before a July 9 deadline set by President Donald Trump.

According to Reuters, two Indian government officials revealed that talks are focused on reducing tariffs in sectors such as agriculture and automobiles, alongside provisions for enhanced market access.

Tariff Alignment and Market Access Top Priorities

One official said the proposed measures include “tariff alignment and quota-based concessions,” with an announcement expected before the end of June.

The U.S. delegation is led by senior staff from the Office of the United States Trade Representative, while India’s team is headed by chief negotiator Rajesh Agrawal. Trade Minister Piyush Goyal may join the talks upon his return from Italy, according to a third source.

Washington is requesting broader access to India’s farm and dairy markets, while Indian negotiators are pushing for more favorable treatment of domestic exports and supply chain partnerships.

One official said India has proposed to lower average tariffs to match the U.S. base rate of 10%, contingent on reciprocal commitments.

The talks follow a February agreement to pursue a phased trade roadmap with the goal of raising bilateral trade volumes to $500 billion by 2030. India recorded a $45.7 billion trade surplus with the U.S. in 2024.

U.S. Commerce Secretary Howard Lutnick said earlier this week that discussions were moving forward and that a resolution could be finalized soon. Neither country has officially commented on the current round of talks.

India Considers Crypto Policy as Part of Wider Strategy

India’s evolving approach to crypto regulation is beginning to intersect with its broader trade and investment strategy. As the country negotiates tariff agreements with the U.S. and other partners, officials are weighing how digital asset policy could factor into future market access and capital flows.

🇮🇳 India’s Supreme Court compares unregulated Bitcoin trading to a “refined Hawala” amid ongoing regulatory uncertainty, urging the government to clarify crypto laws and protect investors.#Crypto #India #Bitcoinhttps://t.co/Wou7XATWTq

— Cryptonews.com (@cryptonews) May 6, 2025

Industry groups argue that tax reform and regulatory clarity could make India a more attractive destination for crypto-related investment. They point to the return of firms like Binance and Coinbase as a cue that clearer rules could draw capital back onshore and complement India’s trade ambitions.

While formal relief has not yet materialized, the Finance Ministry is reviewing a discussion paper on virtual assets. Executives say aligning crypto policy with broader economic goals could support India’s $500 billion trade target with the U.S. and position it more competitively in global digital markets.

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