India Eyes Interim U.S. Trade Deal Ahead of July Tariff Deadline

India is working to secure a three-phase trade agreement with the United States, aiming to finalize an interim deal before July when President Donald Trump’s proposed reciprocal tariffs are expected to take effect, according to Bloomberg sources.

The first phase of the U.S.-India trade pact will likely focus on improved market access for industrial and select agricultural products. It will also address non-tariff barriers such as strict quality control norms. This early agreement seeks to ease trade tensions and prevent tariff escalations between the two countries.

A second phase, tentatively scheduled between September and November, could expand coverage to 19 key sectors, offering a broader framework for bilateral trade. The final, comprehensive trade agreement would require approval from the U.S. Congress and may be completed by next year, the report said.

Talks are currently ongoing, with no confirmed support yet from the U.S. side for the proposed three-tiered structure. Indian officials hope to make significant progress during Commerce Minister Piyush Goyal’s visit to Washington this week, where he is meeting with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.

India has recently threatened to impose retaliatory tariffs, signaling a tougher approach amid ongoing negotiations. Meanwhile, President Trump has publicly downplayed the urgency of a deal, claiming India has offered to eliminate tariffs altogether.

This developing U.S.-India trade negotiation reflects growing pressure to resolve disputes before Trump’s reciprocal tariff policy impacts bilateral trade. Both sides are weighing domestic and geopolitical factors, with potential implications for global supply chains and market access across multiple industries.

The outcome of these talks could shape the future of U.S.-India economic relations and influence broader trade strategies in the Indo-Pacific region.