The much-awaited India-US interim trade deal is expected to be announced by July 8, as both countries have reportedly agreed on all major terms. According to sources, an Indian team led by Rajesh Agrawal, Chief Negotiator and Special Secretary in the Department of Commerce, has been in Washington to finalise the agreement.

This interim deal is seen as a crucial step in the larger trade talks and comes just before US President Donald Trump's tariff deadline on July 9. Trump had earlier stated that reciprocal tariffs would be imposed globally if trade gaps were not addressed. On Friday, he told Fox News that his administration is unlikely to extend the deadline, saying it was about “whatever we want”.

Trump had earlier suspended the 26 per cent tariffs on Indian imports until July 9. These additional levies were first announced on April 2 to reduce the US-India trade imbalance. However, a baseline tariff of 10 per cent still remains in effect. India has been pushing for full exemption from the additional 26 per cent duty.

Both sides are now working on a broader Bilateral Trade Agreement (BTA) expected to be completed in its first phase by October this year. Trump has also been vocal recently about a big trade deal with India. Last week, he said his government is aiming to remove “all trade barriers”, calling them “unthinkable”.

The interim deal focuses on sectors like agriculture, automobiles, industrial goods, and labour-intensive products. While the US is seeking duty concessions on electric vehicles, petrochemicals, wines, dairy, and GM crops, India wants relief for its textile, leather, chemicals, gems, bananas, grapes, and shrimp exports.

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