Clock ticking on Trump tariffs, US team to visit India on August 25; key updates

A US delegation will visit India on August 25 for the next round of negotiations on a proposed bilateral trade agreement, an official said on Tuesday.

The two sides remain engaged as the August 1 deadline approaches for the suspension of tariffs imposed by President Donald Trump.

India has been subject to a 26% tariff under measures that Trump had announced in April, citing the need for "high reciprocal tariffs" on dozens of countries.

Those tariffs were initially suspended for 90 days until July 9, and later extended to August 1, as Washington pursues individual trade deals.

"The US team is visiting for the sixth round of talks," the official said.

The visit will mark the sixth round of talks, following the most recent discussions held last week in Washington between India’s chief negotiator Rajesh Agrawal and Brendan Lynch, Assistant US Trade Representative for South and Central Asia.

Sticking points remain

India has resisted US demands for duty concessions on sensitive sectors like agriculture and dairy products, and farmers' associations have urged the government to exclude them from trade negotiations. India has never offered tariff concessions on dairy in previous free trade agreements.

India is seeking the removal of the 26% additional duty and wants reductions on tariffs affecting its steel and aluminium exports (currently at 50%) and automobiles (25%). It is also pushing for US duty cuts on exports from its labour-intensive sectors, including textiles, leather, gems and jewellery, chemicals, and select agricultural goods such as bananas and shrimp.

Washington, on the other hand, wants concessions for a broad range of US exports, including electric vehicles, industrial goods, wines, petrochemicals, dairy, apples, tree nuts, and genetically modified crops.

India has also retained the right under World Trade Organization (WTO) rules to impose retaliatory tariffs, should the talks fail.

Trade volumes rising

India’s merchandise exports to the U.S. surged 22.8% year-on-year to $25.51 billion in the April-June quarter, while imports rose 11.7% to $12.86 billion, according to trade ministry data.

Trump signals higher tariffs globally

Trump said countries that fail to reach separate trade agreements with the US will soon face across-the-board tariffs of 15% to 20%, a steep increase from the 10% baseline set in April.

"I would say it'll be somewhere in the 15 to 20% range," Trump said during a media briefing alongside British Prime Minister Keir Starmer. “We're going to be setting a tariff for essentially the rest of the world.”

Trump has already announced higher tariffs on some countries, including Brazil, effective this Friday. The US has recently concluded major trade deals with the European Union, Japan, Britain, Indonesia, and Vietnam.