Despite intense back-and-forth, India and the US are unlikely to reach a trade agreement before the July 9 deadline
Indian negotiators have reportedly returned, signalling a pause or breakdown in talks
President Trump has signed letters indicating tariffs as high as 70%, effective August 1
This move may pressure trading partners, including India, to yield to US demands or risk severe economic repercussions
The US wants broader access to India’s agricultural market
But with half of India’s population dependent on farming, and concerns over GM food, New Delhi remains hesitant to concede
A recent US–Vietnam deal allows duty-free US imports while slapping steep tariffs on Vietnamese goods. India fears similar terms could erode its trade sovereignty
With the US adopting protectionist tactics and China weaponising trade, the global system is increasingly unstable. India faces the dual challenge of managing both pressures
India must bolster domestic capabilities while forging deeper trade ties with like-minded partners
In a world of rising tariffs and geopolitical assertion, multilateral cooperation is key