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Agri, autos delay trade deal with US

Jul 22, 2025

 

Despite repeated assurances from US President Donald Trump that a deal is close, unresolved issues, particularly concerning agriculture and automobiles, are preventing a final agreement. India and the United States have just concluded a week-long round of negotiations aimed at finalising an interim trade agreement. This deal is being closely watched as it could allow India to avoid a new round of steep reciprocal tariffs, set to take effect from August 1, 2025. A key point of contention in the talks is the United States’ demand for broader agricultural access to Indian markets. Washington is seeking entry for genetically modified (GM) crops such as soya and corn, as well as more extensive access across other farming sectors. Trade tensions are also running high over US tariffs on automobile imports, as per a report.

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