U.S. and India Rush to Finalize Trade Deal as Trump Secures Agreement with Vietnam

WASHINGTON/NEW DELHI — U.S. and Indian negotiators are working urgently this week to reach a trade deal that could reduce tariffs, ahead of President Donald Trump’s July 9 deadline. However, disagreements over U.S. dairy and agricultural products continue to stall progress, sources familiar with the discussions said.The push for an agreement comes after Trump announced a separate deal with Vietnam this week, lowering U.S. tariffs on many Vietnamese goods to 20% from a previously threatened 46%. Under that agreement, U.S. products would reportedly enter Vietnam duty-free, though details remain limited.Negotiators from India have stayed in Washington since last week to try to finalize a deal, sources in India’s commerce ministry said. But India is standing firm against lowering tariffs on key U.S. agricultural exports like genetically modified corn, soybeans, rice, and wheat, citing political concerns over protecting its farmers.“Modi’s government doesn’t want to be seen as surrendering the interests of farmers — a strong political group in the country,” one source said.India is, however, open to lowering tariffs on items such as walnuts, cranberries, medical devices, automobiles, and energy products, sources added.A U.S. source close to the talks said negotiators believe they are “close” to an agreement, with both sides recognizing the strategic importance of deepening economic ties.President Trump echoed this optimism on Tuesday, telling reporters aboard Air Force One that a deal with India could reduce tariffs for both countries and open access to India’s market of 1.4 billion consumers.At the same time, Trump cast doubt on a potential agreement with Japan, saying he might impose tariffs of 30% or 35% on Japanese goods — higher than the 24% he announced in April. Japan has been seeking relief from 25% tariffs on its automotive and steel exports.Officials from the U.S. Trade Representative’s office, Commerce Department, and Treasury declined to comment on the negotiations, and India’s embassy in Washington did not respond to requests for comment.