The U.S. and India are currently in negotiations to sign an interim deal that could drop the baseline tariff on imported Indian goods to below 20%, said Bloomberg, citing sources close to the matter. President Trump had initially set a 26% reciprocal tariff rate for India.
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Trump has sent letters with updated tariff levels to 23 countries this week, although India has not received one and does not expect to receive one given advanced negotiations between the two countries. India expects the U.S. to announce the interim deal, which would give New Delhi more time to sign a more comprehensive agreement by fall, said the sources.
Indian Trade Representatives to Visit U.S.
It’s not exactly clear when the deal will be announced. However, Indian trade representatives are expected to visit the U.S. soon, according to an Indian official.
In 2024, the U.S. exported $41.8 billion of goods to India and imported $87.4 billion of goods from the country, resulting in a goods trade deficit of $45.7 billion.
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