India-US Mini Trade Deal Likely to Be Announced Today by 10 PM IST: Key Highlights and Implications

India and the United States are expected to announce a long-awaited mini trade deal today by 10 PM IST, according to sources cited by CNBC Awaaz. While both nations are set to confirm the agreement, the finer details of the deal may be disclosed at a later stage.

Highlights of the Expected India-US Trade Deal:

• Tariffs to Remain in Place: The 10% baseline tariffs previously introduced by the U.S. will remain unchanged even after the agreement is announced.
• Relief for Labour-Intensive Sectors: Indian industries such as textiles, garments, and leather products are likely to benefit from reduced U.S. tariff rates, a significant move that could boost exports and employment.
• Agricultural Products Excluded: Contentious issues around agro and farm products—a major sticking point in negotiations—will reportedly not be addressed in this mini deal.
• Zero Duties on Some U.S. Industrial Goods: The deal is expected to include provisions that eliminate duties on select U.S. industrial goods, potentially increasing American exports to India.
• Impact on Chinese Goods: The agreement may pave the way for stricter measures against Chinese imports, in line with Washington’s broader trade strategy.

U.S. Tariff Policy Updates:

In April, U.S. President Donald Trump initiated a wave of reciprocal tariffs, later pausing them for 90 days to allow countries to negotiate bilateral deals. On July 7, Trump issued formal tariff notification letters to 14 countries, warning of new import duties effective August 1. More such letters are expected later this month as part of a push to secure favorable trade terms.

“We are close to making a deal with India,” Trump stated on July 7. “We’ve already made deals with the UK and China. Others couldn’t come to terms, so we’re sending them letters with the tariffs they will face. We’ll be fair if they have valid concerns.”

India Stands Firm on National Interests:

Indian Commerce Minister Piyush Goyal emphasized that India will not be rushed into signing any agreement under external pressure.

“India does not enter into trade agreements based on artificial deadlines. We will only sign a deal with the U.S. when it is fully finalized and aligns with our national interests,” Goyal said during a media briefing.

Background and Context:

Negotiations between India and the U.S. have spanned several months, with disputes primarily centered on tariff structures and market access. The anticipated mini trade deal, though limited in scope, could mark a significant step toward broader economic cooperation between the two nations.