Has India reached an agreement on Trump’s tariffs? Financial Times reveals “a deal could be finalised as soon as this week”
US President Trump’s reciprocal tariffs will expire on July 9, and the international community is paying close attention to which country will be the next to reach a trade agreement with Washington. The Financial Times reported that two people familiar with the matter revealed that India will finalize a temporary trade agreement with the United States as early as this week.
India was hit with a 26% reciprocal tariff by the United States, which is one of the highest rates compared to other major countries.
India’s chief negotiator Rajesh Agrawal led a delegation to Washington on June 30 to finalize the final details of the trade agreement. Indian Foreign Minister S. Jaishankar is expected to go to Washington on July 1 or 2 to meet with US Secretary of State Marco Rubio.
People familiar with the matter said that the draft agreement may exclude tariffs on highly politically sensitive agricultural products in India, especially wheat and dairy products, and the relevant negotiations have not yet been finalized.
People familiar with the matter also pointed out that India has agreed to import more natural gas from the United States to reduce its trade surplus. According to Indian government data, India’s trade surplus with the United States is $41.2 billion in fiscal year 2024-2025.
India and the United States have also reached a consensus on unilateral or bilateral tariff reductions on thousands of commodities. If China is not counted, India will be the second country to reach a trade agreement with the United States, the first being the United Kingdom.
