Daijiworld Media Network - Washington
Washington, Jul 29: With the August 1 deadline for reciprocal tariffs rapidly approaching, the United States has indicated that more negotiations are required before finalising a bilateral trade agreement with India.
Speaking to CNBC, US Trade Representative Jamieson Greer stated that while discussions with India have been positive, both sides need to engage in additional rounds of dialogue to reach a conclusive deal.
"We continue to speak with our Indian counterparts, and the discussions have always been constructive," said Greer. "India has shown a strong interest in opening up segments of its market, but more talks are needed to determine how ambitious they're willing to be."
Greer acknowledged India’s traditionally protectionist trade policy, noting, “That’s how they’ve done business for a long time—by strongly shielding their domestic markets.”
On a broader note, Greer also mentioned that China’s willingness to return to trade talks with the US is a "good sign," although he cautioned against expecting any "enormous breakthroughs" soon.
Meanwhile, the Indian side appears optimistic. Union Commerce Minister Piyush Goyal recently indicated that the two countries are working toward a resolution that could potentially avert 26% tariffs on specific goods. Similarly, Finance Minister Nirmala Sitharaman noted last week that bilateral trade talks with both the US and EU are progressing positively.
“I won’t categorise the current stage of talks as good or bad, but I can confirm that the negotiations are moving forward,” Sitharaman said.
Adding to the sense of cautious optimism, US President Donald Trump earlier this month remarked that a trade agreement with India was “very close” and could be finalised soon. “We’re very close to a deal with India, where they open up [their market],” he said.
Notably, while Trump has issued tariff notices to several countries, threatening levies of up to 35% on goods over unresolved trade matters, India has not yet received such a formal notice — offering a possible window for continued diplomacy.
As the August 1 deadline looms, all eyes are on Washington and New Delhi to see whether a breakthrough can be reached in time to avoid a fresh trade flare-up.