BREAKING: US‑India Tariff Talks Face Dairy, Agriculture Deadlock
July 3 2025, 10:30 AM, New Delhi — US and Indian negotiators are scrambling to clinch a tariff‑reducing trade deal before President Trump’s July 9 deadline, but a fierce dispute over dairy and farm imports still blocks agreement. Failure could see US duties on Indian goods snap back to 26%, derailing $200 billion in annual trade. (businesstoday.in, businesstoday.in)
July 9 Deadline Raises Stakes
With only six days left, Trump’s 90‑day tariff pause ends July 9; reinstated duties would hit autos, steel and textiles hardest. “These talks are literally racing against the calendar,” said trade analyst Ananya Singh. (businesstoday.in)
Dairy Farmers Fear Market Shock
India’s dairy sector sustains 80 million smallholder farmers, making tariff cuts on US milk powder politically toxic. “We can’t abandon gaon‑level livelihoods for a quick deal,” warned cooperative leader Ramesh Patel. (asiatimes.com)
Proposed Tariff Cuts Detailed
India has offered lower duties on walnuts, cranberries, medical devices, autos and LNG, while the US may pare levies on Indian cars and pharmaceuticals. US negotiators still demand wider access for GMO corn, soy and wheat. (businesstoday.in)
Markets React to Negotiation Signals
The Nifty 50 opened 0.27 % higher at 25,520.8 as traders priced in a possible breakthrough; mid‑caps mirrored the uptick. “Any compromise should lift export‑oriented stocks,” said ICICI Securities strategist Priya Menon. (reuters.com)
FAQs About US‑India Tariff Deal
Q1: What is the July 9 deadline for the US‑India tariff deal?
A1: It ends Trump’s 90‑day tariff freeze; without an accord, duties on Indian exports jump back to 26% on July 9.
Q2: Why is dairy a sticking point in US‑India talks?
A2: India shields 80 million small dairy farmers; US wants lower tariffs on milk powder and cheese, making dairy the talks’ flashpoint.
