'Fantastic progress' in trade deal talks with US - India minister

July 25, 2025

India's Commerce Minister Piyush Goyal has expressed optimism about "fantastic progress" in trade negotiations with the United States, following his signing of a free trade deal with the UK. This comes as the August 1 deadline approaches, when the US could impose 26% tariffs on Indian goods if no agreement is reached. President Trump recently indicated the countries are "very close" to finalizing an interim trade agreement, with both nations targeting a comprehensive bilateral deal by year's end.

Who is affected

Indian exporters facing potential 26% US tariffs
US businesses seeking access to India's agricultural and dairy markets
Millions of small farmers in India whose livelihoods depend on protected agricultural sectors
Manufacturers of goods like Bourbon whiskey and motorcycles that have already seen tariff reductions
Both countries dealing with a $45 billion US trade deficit with India

What action is being taken

Indian delegations are making multiple trips to the US to finalize deal details
India is negotiating with the US to reach an agreement before the August 1 deadline
India is considering pursuing smaller sectoral agreements as part of a potential comprehensive deal
The US and India are working toward an interim trade agreement while aiming for a full bilateral deal by year-end
India has already reduced tariffs on certain US goods including Bourbon whiskey and motorcycles

Why it matters

The US has threatened to impose 26% tariffs on Indian goods if no deal is reached by August 1
The bilateral trade between the countries is substantial at $190 billion with a target to grow to $500 billion
The US currently runs a $45 billion trade deficit with India that Trump wants to reduce
Agricultural access represents a significant point of contention with India protecting its farm sector for food security and farmer livelihood reasons
A successful agreement would strengthen economic ties between two major global economies

What's next

No explicit next steps stated in the article

Read full article from source: BBC