As India and the United States push to finalize an interim trade agreement before new US tariffs come into effect in July, negotiations have intensified over several contentious issues, according to sources familiar with the discussions.
During talks held in New Delhi from June 5 to 10, US officials, led by Assistant Trade Representative Brendan Lynch, urged India to remove tariffs and loosen price regulations on medical devices. The US also pushed for relaxed rules on data localization, which currently require companies to store data within India. Additionally, the US is advocating for India to open its market to genetically modified (GM) crops.
In response, India has sought exemptions from existing US tariffs on steel and automobiles and is pressing for relief from proposed duties on pharmaceuticals. Indian officials have warned that if no agreement is reached, retaliatory tariffs are set to take effect on July 9.
The negotiations are part of a broader effort to secure a phased trade agreement with “early harvest” outcomes. Indian officials said both sides have agreed to fast-track the discussions.
Meanwhile, US President Donald Trump’s administration has launched a Section 232 investigation into pharmaceutical imports, a move that could lead to new tariffs based on national security grounds similar to those previously imposed on steel, aluminum, and automotive imports.
Prime Minister Narendra Modi, who is expected to attend the G7 summit in Canada soon, may use the opportunity to engage directly with Trump and accelerate progress on the trade deal.
India’s Ministry of Commerce and Industry has not commented publicly on the ongoing talks.
