India is seeking complete removal of the 26% retaliatory tariff and the existing 10% baseline US import duty in a proposed interim trade agreement with the United States, expected to be finalised before 8 July, according to The Hindu Business Line.

Commerce & Industry Minister Shri Piyush Goyal recently visited Washington to accelerate negotiations. He held discussions with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, focusing on key Indian exports such as textiles, leather, and gems & jewellery.

An official source cited in the report said talks are progressing positively, with both countries targeting a first-phase agreement before the 9 July deadline, when the 90-day suspension of the additional US tariffs expires. The deal may also include provisions on services, digital trade, and the reduction of non-tariff barriers.

The US imposed the 26% additional duty on Indian goods on 2 April as a retaliatory measure but delayed enforcement until 9 July. While this postponement offers a temporary breather, India is now pressing for the complete rollback of both the retaliatory and baseline tariffs.

In return, India may offer concessions such as minimum import prices or quotas for sensitive sectors like agriculture and dairy. At the same time, it is pushing for greater access to the US market for products including gems and jewellery, garments, plastics, chemicals, shrimp, bananas, and grapes.

The US, in turn, is seeking tariff relief for its exports of industrial goods, electric vehicles, petrochemicals, wines, dairy, and genetically modified agricultural products.

Negotiators are working under a tight timeline to take advantage of the current tariff suspension and finalise the initial tranche of a broader bilateral trade agreement.

According to the report, both nations aim to double bilateral trade to $500 billion by 2030. The US has expressed ongoing concerns over India’s non-tariff barriers and its rising trade surplus, which reached $41.18 billion in FY2024–25. Total bilateral trade during the period stood at $131.84 billion, with the US remaining India’s largest trading partner for the fourth consecutive year, accounting for around 18% of India’s total merchandise exports.