US–India trade talks drag on as White House pushes for major concessions

A long-promised trade agreement between the United States and India — once billed as a quick win for President Donald Trump’s “reciprocal” trade agenda — is still proving elusive, despite more than two months of assurances that a deal is imminent.

Negotiations, which began in earnest in February, have made some headway. Two people close to the talks, who spoke on condition of anonymity due to the sensitivity of the discussions, said both sides are moving toward a preliminary agreement, with hopes for a broader pact by the fall. But sticking points remain, particularly over the White House’s demands that India significantly lower its trade barriers in exchange for only modest concessions on recently imposed U.S. tariffs, Caliber.Az reports, citing Politico.

The Trump administration is pushing hard for a breakthrough before the president’s self-imposed July 8 deadline, seeking to tout progress as proof that its tough tariff strategy is yielding results. However, that pressure — combined with Trump’s efforts to tie trade to broader geopolitical concerns — is complicating the Modi government’s ability to sell the deal to a domestic audience.

“Nothing riles Indians more than the idea that their government was bullied by a foreign leader,” said Syed Akbaruddin, India’s former ambassador to the United Nations. “A trade bargain that could have been a win-win deal now risks being portrayed by those who oppose it as a tribute, not a partnership.”

The Trump administration’s all-pressure-no-concessions posture has made even traditional allies cautious. Officials in New Delhi worry that being seen as capitulating to Washington’s demands could backfire politically, even as they acknowledge progress on key issues like agricultural access, energy purchases, and non-tariff barriers.

On a visit to India in April, Vice President JD Vance announced that the two nations had “officially finalized the Terms of Reference” for the negotiations. Commerce Secretary Howard Lutnick echoed the optimism on June 3, stating, “You should expect a deal between the United States and India (in the) not-too-distant future because I think we have found a place that really works for both countries.”

Trump, too, has hinted at progress. Speaking at the White House on June 27, he declared, “I think we’re going to reach a deal where we have the right to go in and trade” in India. He added, “We’re looking to get a full trade barrier dropping, which is unthinkable, and I’m not sure that that’s going to happen, but as of this moment, we’ve agreed to that.”

Despite the optimistic rhetoric, insiders say the deal remains bogged down by Washington’s insistence that India do most of the heavy lifting. The imbalance in expectations — and lack of significant incentives from the U.S. — has raised concerns in New Delhi that finalising the agreement could amount to political suicide for Prime Minister Narendra Modi’s government.

India, one of the first countries to engage with Trump’s trade overhaul, is now finding that a deal meant to symbolise renewed partnership may instead expose rifts in approach and principle. For the White House, however, the stakes are high: with few trade victories under its belt, a deal with India would be only the second agreement secured under Trump’s tariff offensive, excluding a temporary ceasefire with China.

By Vugar Khalilov