New Delhi: Indian trade negotiators arrived in the United States on Friday for the final round of in-person talks before the July 9 deadline for the reciprocal tariff pause expires. American President Donald Trump stated that the United States and India might sign a trade deal under which the country would open up its markets. Everybody wants to make a deal and have a part of it; we just signed with China yesterday.
They are offering some great deals, and one is coming up, possibly with India. It’s a very big one. Where are they going to open up India? They are going to make deals with everybody. Some of them are just going to send them a letter, saying thank you very much. They want to do some of it, but they want to make more deals than I would do.
The final round of talks assumes significance as the previous one yielded little progress, with market access in agriculture and other sensitive areas remaining key sticking points. This would build pressure on the final round, where India could face more pressure to accept the United States demand to avoid reciprocal tariffs.
The roadblock to a trade deal arises because the United States has identified several non-tariff barriers and high duties in India but has yet to commit to several Indian demands, notably since the United States currently lacks a valid Trade Promotion Authority. Without this, the current US administration is not legally permitted to reduce tariffs. Experts also pointed out that the tariff-related discussions in the bilateral trade agreement negotiations may be limited only to executive tariffs levied by the current administration, raising questions about the long-term durability of any deal reached.
Indian officials have indicated that diversifying oil and defence procurement is in the country’s strategic interest, and sourcing more from the United States could significantly help bridge the good trade gap. India’s refining capacity has been increasing in tandem with its oil import dependency, which surged to 90% in April 2025.
Official trade data indicate that India has already increased its oil purchases from the United States. India’s import of crude oil from the United States increased by 11.49% to $63 billion in March 2025, compared to the previous year.
