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India and U.S. Race to Sign Interim Trade Tranche by Mid‑July

USTR public hearings on proposed Section 301 tariffs in early July create a legal test for negotiators and the pact’s timeline.

Overview

  • Negotiators completed a three‑day round of talks in New Delhi from June 2–4 and Indian Commerce Minister Piyush Goyal said they aim to execute the first tranche by mid‑July.
  • The Office of the U.S. Trade Representative has proposed a Section 301 surcharge of about 12.5% for India and scheduled public hearings in early July that could alter final tariff terms.
  • A temporary uniform 10% U.S. duty that has been in place since February is due to expire in late July, giving both sides a near‑term incentive to finalise the interim deal.
  • India has signalled large purchase commitments reported at roughly USD 500 billion over five years and is seeking preferential market access versus regional competitors.
  • The talks build on a Feb. 7 framework that would cut U.S. tariffs on Indian goods to about 18% and remove a 25% punitive levy tied to Russian oil purchases, while labour‑intensive exporters face particular exposure if extra duties are added.