India-US trade deal hits agri block, will miss Trump tariff relief deadline: report

A long-anticipated trade agreement between India and the United States is unlikely to be finalized before a critical 90-day Trump tariff pause window closes, business website www.moneycontrol.com reported today, potentially leaving Indian exports vulnerable to increased levies. MC reports in its exclusive news break that the US’ demand for reducing tariff barriers in the agriculture sector is the main roadblock to a quick agreement. 

The report also says that India is willing to agree to most of the US’ demands, Washington is ‘yet to reveal its complete wish list’. 

Despite recent progress, Indian officials have indicated the deal may take at least six to eight months to conclude. Commerce and Industry Minister Piyush Goyal told reporters the two countries remain committed to finalizing a “comprehensive and forward-looking” agreement aimed at boosting bilateral trade to $500 billion by 2030.

COMPLEX DEAL

Negotiators from both sides are racing to bridge differences on key tariff lines, particularly in agriculture and labor-intensive sectors. India has offered concessions on frozen meat imports and certain agricultural goods from the U.S., in exchange for long-term market access for Indian pharmaceuticals, textiles, and engineering products.

“There is strong political will on both sides, but the complexity of the deal means a rushed conclusion is unlikely,” one Indian official involved in the talks said, speaking on condition of anonymity.

To sweeten the deal, India has proposed a rare “forward most-favoured-nation” clause, which would automatically extend to the U.S. any better terms New Delhi offers future trading partners.

U.S. trade officials have not publicly commented on the latest timeline, but industry groups in both countries have urged negotiators to finalize the agreement swiftly to avoid disruptions when the temporary suspension of certain tariffs expires.

Analysts say failure to close the deal within the 90-day window could result in renewed trade friction, though both sides are expected to continue negotiations regardless.