India Agreement of Temporary Commercial Deal in the United States before the date of August 1: Report

According to what appears to be the possibilities of a temporary trade agreement between India and the United States, the talks remain suspended on controversial tariff cuts, according to the sources of the Indian government that told the Reuters news agency. The deadline for this agreement was set on August 1 by Washington.

In April, US President Donald Trump threatened to impose a 26 percent tariff on Indian imports. Although the implementation was initially suspended to allow negotiations, this stop ended on August 1, as India has yet obtained an official tariff letter from the United States, unlike other countries. This position added pressure on both sides to get a decision quickly.

India’s commercial discussions, led by the chief negotiator, Rajash Agrouwal, did not achieve a breakthrough even after five rounds of conversations in Washington. “The temporary deal appears before August 1, although the virtual discussions are continuing,” the temporary deal appears before August 1, although the virtual discussions are continuing, “he said, according to the Indian government sources, according to the report.

The basic issues that disrupt negotiations include India’s reluctance to open its agricultural sectors, dairy products, and the United States’ resistance to reduce customs tariffs on Indian steel, aluminum and cars. Officials are considering postponing these matters to a later stage after a temporary agreement. This strategy may reduce current tensions, providing more focused discussions on these sensitive topics later.

Ajay Sahai, General Manager of the Indian Export Organizations Union, highlighted the possible negative effects on sectors such as gemstones and jewelry if the 26 % definitions are applied. “However, this may be temporary, as both countries aim to sign the deal over time,” he said.

US Treasury Secretary Scott Payet highlighted the Trump administration’s preference for the quality of trade agreements over their timing. When asked about a possible extension of the deadline, he indicated that the decision is settling with President Trump, indicating that flexibility may be possible.

Indian officials maintain optimism towards reaching a more comprehensive agreement by September or October, and is in line with the discussions between Prime Minister Narendra Modi and President Trump earlier this year. “Given that there were five rounds of negotiations and there is expected to be another American delegation, we are still optimistic about the completion of a commercial agreement,” a third government source expressed.

The Indian Ministry of Commerce and the American Trade Representative Office have not yet responded to requests to comment on the ongoing negotiations.