India and US near interim trade deal in three tranches ahead of July tariffs

NEW DELHI: India is discussing a US trade deal structured in three tranches and expects to reach an interim agreement before July, when President Donald Trump’s reciprocal tariffs are set to kick in, as per officials in New Delhi.

The interim deal will likely cover areas including market access for industrial goods, some farm products and addressing some non-tariff barriers, such as quality control requirements.

The talks are still ongoing and there’s no clarity if the Trump administration has agreed to a three-stage process for a trade deal. India’s Commerce Minister Piyush Goyal is currently in Washington on a four-day trip that ends Tuesday. In a post on X, Goyal said he had ‘good discussions’ with US Commerce Secretary Howard Lutnick to advance the first tranche of the trade agreement. The Indian minister is also expected to meet US Trade Representative Jamieson Greet during the trip.

India’s Ministry of Commerce and Industry and Ministry of External Affairs didn’t immediately respond to requests for further information. The USTR and Commerce Department also didn’t immediately respond to questions, said Bloomberg.

The second stage of an India-US deal may be a broader and more detailed agreement timed for around September to November. The timing for this part of the deal may be aligned with an expected visit by trump to India for the Quad leaders’ summit.

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The final leg of the deal will likely be a comprehensive agreement that would follow once there’s approval from the US Congress, possibly concluded only next year.

India was one of the first countries to begin trade negotiations with the US following Prime Minister Narendra Modi’s visit to the White House in February, shortly after Trump took office. Both leaders agreed to boost trade and work toward concluding the first tranche of the bilateral deal by fall of this year. Since then, New Delhi has signalled the possibility of early mutual wins before the fall deadline.

While Indian officials say talk remain on track, there have been signs of tension in recent days. New Delhi appears to be adopting a tougher stance in negotiations, threatening retaliatory tariffs on US goods last week. Trump also had claimed that India offered to slash tariffs on US goods to zero, while downplaying any sense of urgency to reach a trade deal.

The US leader’s comment about his involvement in negotiating a ceasefire between India and Pakistan have also been a source of frustration in New Delhi. Trump has repeatedly said he used trade as a bargaining tool to secure a truce between India and Pakistan after four days of military conflict that had brought the two South Asian rivals close to an all-out war. Indian officials have denied Trump’s assertions.