‘Ball now in US court docket’: India ‘attracts its red traces’ as Donald Trump’s July 9 tariff deadline nears; here’s what’s happening on trade deal

India-US trade deal: Ahead of US President Donald Trump’s July 9 tariff deadline, India has drawn the red traces on a mini trade deal. According to Indian officers, the choice on the mini or interim trade deal now rests with America.Sources advised PTI that ought to issues be resolved, an interim trade deal could possibly be introduced previous to July 9, which coincides with the conclusion of the 90-day suspension interval of Trump-era tariffs introduced on April 2, affecting a number of nations together with India.

India-US Trade Deal: India Draws Red Lines

As negotiations proceed for the proposed interim trade settlement between India and the US, India has established agency boundaries on essential sectors together with agriculture and dairy.“India has drawn its red lines… now the ball is in the US court,” sources advised PTI.India and the US spoke of discussions for a bilateral trade settlement (BTA) in February, setting a timeline to finish the primary section by autumn (September-October) this 12 months. Prior to this milestone, each nations are working to determine an interim trade association.Also Read | India-US trade deal: ‘Don’t make offers based mostly on deadlines, nationwide curiosity paramount’, says Piyush Goyal as Donald Trump’s tariff date nearsFollowing the US implementation of a further 26% reciprocal tariff on Indian merchandise on April 2, which was briefly suspended for 90 days, America’s 10% baseline tariff stays lively. India seeks full exemption from the 26% tariff.“If the proposed trade talks fail, the 26 per cent tariffs will come into force again,” one of many sources mentioned.Commerce Minister Piyush Goyal emphasised final week that India’s strategy to trade agreements isn’t deadline-driven, and the nation will solely proceed with the US trade deal when it’s utterly finalised and aligns with nationwide pursuits.Trade agreements can solely materialise once they present mutual benefits to each taking part nations, making certain a useful end result for all events concerned, he had harassed.“National interest should always be supreme. Keeping that in mind, if a deal is made then India is always ready to deal with developed countries,” Goyal had mentioned on July 4.

India-US Trade Deal Issues

Also Read | India-US trade deal: What’s the impasse about? Top points blocking settlement as Donald Trump’s 26% tariff deadline looms

India-US Trade Ties

India’s largest buying and selling associate since 2021-22 has been the United States. The bilateral trade figures for 2024-25 reached $131.84 billion, comprising $86.51 billion in exports, $45.33 billion in imports, ensuing in a trade surplus of $41.18 billion.In the April-May interval of the present fiscal 12 months, India’s merchandise exports to the United States elevated by 21.78 per cent, reaching $17.25 billion. Similarly, imports grew by 25.8 per cent to $8.87 billion. Services trade between the 2 nations expanded from $54.1 billion in 2018 to roughly $70.5 billion in 2024.Also Read | ‘Take it or depart it’: Donald Trump says US tariff letters prepared for 12 nations forward of July 9 deadline; can be despatched out from…The United States represents a major marketplace for Indian enterprises, significantly in sectors together with skilled, scientific, and technical companies, manufacturing, and knowledge know-how. In phrases of India’s general trade composition, the United States contributes roughly 18 per cent of whole items exports, over 6 per cent of imports, and roughly 11 per cent of bilateral trade.The United States invested $70.65 billion in India in the course of the interval from April 2000 to March 2025, positioning itself as the third most important investor.India’s main exports to the United States in 2024 comprised pharmaceutical formulations and biologicals price $8.1 billion, telecommunications gear valued at $6.5 billion, valuable and semi-precious stones amounting to $5.3 billion, petroleum merchandise at $4.1 billion, valuable metallic jewelry together with gold at $3.2 billion, cotton clothes with equipment totalling $2.8 billion, and iron and metal merchandise price $2.7 billion.The key imports consisted of crude oil valued at $4.5 billion, petroleum merchandise price $3.6 billion, coal and coke at $3.4 billion, processed diamonds at $2.6 billion, electrical equipment amounting to $1.4 billion, aviation parts at $1.3 billion, and gold imports price $1.3 billion.Also Read | US plans ‘economic bunker buster’ invoice: Will Donald Trump impose 500% tariff on nations importing oil from Russia? How it might affect India