India Returns From US Trade Talks Without Deal On Farm, Dairy Products

India-US trade negotiations have hit a roadblock, as a high-level Indian delegation led by chief negotiator Rajesh Agrawal returned from Washington without securing an agreement on key agricultural and dairy issues.

The week-long discussions, held from June 26 to July 2, were part of efforts to finalise an interim bilateral trade deal.

Although negotiators made progress in some areas, they failed to reach a consensus on the US demand for greater access to India’s tightly protected agriculture and dairy markets, a sector India views as vital to the livelihoods of millions of small farmers.

The United States continues to press for improved market access, but Indian negotiators remain firm, viewing the issue as politically and economically sensitive.

Despite the deadlock, both sides are hopeful that high-level political intervention may yet lead to a breakthrough before the July 9 deadline.

The stakes are high. India is keen to avoid a proposed 26% hike in US tariffs on its exports, which could severely impact sectors like textiles, leather, and footwear, key contributors to India’s labour-intensive economy.

The US prefers simple, enforceable trade deals

In return, New Delhi is seeking tariff relief on these sectors to help boost its competitiveness in the US market.

Meanwhile, US President Donald Trump has reiterated his administration’s tough stance on trade.

Speaking to reporters on Thursday, he confirmed that formal notices about the upcoming tariff hikes will begin going out Friday.

The new levies, ranging between 10% and 70%, are scheduled to take effect from August 1 if no agreement is reached.

“The US prefers simple, enforceable trade deals,” President Trump said. “You’re going to pay a 20 or 30 per cent tariff,” he added, underlining a no-nonsense approach to trade partners.

The US President has already announced new trade deals with Vietnam and China and suggested that India could be next — if it agrees to further open its markets to American goods.

With time running short, negotiators on both sides now look to their political leadership to bridge the gap and conclude a deal that could prevent tariff escalations and restore momentum in India-US trade ties.

Also read: PM Modi To Visit Iconic Boca Stadium During Historic Argentina Trip