US, India push for trade pact after Trump strikes deal with Vietnam, sources say
The push comes as Trump announced an agreement with Vietnam that cuts US tariffs on many Vietnamese goods to 20% from his previously threatened 46%.
Trump said that US products could enter Vietnam duty free, but details were scant.
Trump threatened a 26% duty on Indian goods as part of his April 2 'Liberation Day' reciprocal tariffs, which were temporarily lowered to 10% to buy time for negotiations.
Sources in India's commerce ministry said that a trade delegation from India was still in Washington a week after arriving for talks that started last Thursday and Friday.
They may stay longer to conclude a deal, but without compromising on key agricultural and dairy issues, the sources said, adding that it was unacceptable to lower tariffs on genetically modified corn, soybeans, rice and wheat grown in the US.
Prime Minister Narendra Modi's government 'doesn't want to be seen as surrendering the interests of farmers - a strong political group in the country,' one of the sources said.
However, India is open to lowering tariffs on walnuts, cranberries and other fruits, along with medical devices, autos and energy products, the source said.
A U.S. source familiar with the talks said that there were 'indications that they are close' and negotiators have been told to prepare for a potential announcement.
The source added that 'there's been intense and constructive effort to close a deal. I think both sides understand the strategic importance, beyond the economic importance, of closing a deal.'
Trump echoed those sentiments on Tuesday, telling reporters on Air Force One that he could reach a deal with India that would cut tariffs for both countries and help American companies compete in India's market of 1.4 billion consumers.
At the same time, Trump cast doubt on a potential deal with Japan, saying he may impose a tariff of 30% or 35% on Japanese goods, well above the 24% duty rate he announced on April 2.
Japan is seeking to lower separate 25% automotive and steel tariffs that Trump imposed.
India to finalise interim trade deal with US as early as this week, FT reports
Spokespersons for the US Trade Representative's office, the Commerce Department and the U.S. Treasury did not respond to request for comment on the state of trade negotiations with India and other countries.
A spokesperson for India's embassy in Washington did not respond immediately to a request for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
15 minutes ago
- Express Tribune
PM, military leadership played key role in brokering Iran-Israel ceasefire: Naqvi
Listen to article Interior Minister Mohsin Naqvi stated that Prime Minister Shehbaz Sharif and the military leadership played a pivotal role in the Iran-Israel conflict and the subsequent ceasefire between the two countries. 'Prime Minister Shehbaz Sharif played a crucial role in the ceasefire between Israel and Iran, and the military also played a significant role in this regard. I don't want to go into further details, but the way PM negotiated with world leaders is something we must be proud of,' he said. The 12-day war, which began with unprovoked Israeli military strikes in Iran on June 13, resulted in 610 deaths, including senior nuclear scientists and high-ranking military commanders. In retaliation, strikes from Iran killed 28 in Israel. The US joined the conflict on June 22 with bunker-buster bombings on Iran's nuclear facilities in Natanz, Fordow, and Isfahan. A US-brokered ceasefire was reached on June 24, shortly after Iran launched missiles at the largest US airbase in the Middle East, located in Qatar. وفاقی وزیر داخلہ محسن نقوی اور وزیر مملکت داخلہ طلال چوہدری سے چئیرمین رویت ہلال کمیٹی مولاناعبدالخبیر آزاد کی سربراہی میں تمام مکاتب فکر کے جید علمائے کرام کی ملاقات محرم الحرام خصوصا عاشورہ کے موقع پر امن وامان اور مذہبی ہم آہنگی یقینی بنانے کے لیے تفصیلی تبادلہ خیال — Ministry of Interior GoP (@MOIofficialGoP) July 3, 2025 Recalling the recent Pakistan-India conflict that ended after US President Trump brokered a ceasefire, he stated that during India's attack, Field Marshal Asim Munir stood firm and strong, and his resolve was that India would have to suffer four times as much. The minister made these remarks during a meeting with religious scholars in Islamabad on Thursday, which focused on maintaining law and order during Muharram. Speaking on the occasion, Naqvi appreciated the role of religious scholars in establishing peace. He suggested that the chairman of the Ruet-e-Hilal Committee adopt a theme of unity among people of different schools of thought, encouraging them to work together without abandoning their own beliefs or interfering with others. Pakistan-India conflict The latest escalation between Pakistan and India began on April 22, when an attack in Pahalgam killed 26 people. India immediately blamed Pakistan for the incident. However, Pakistan categorically rejected the Indian blame. Tensions further escalated in the early hours of May 7, when missile strikes hit six cities in Punjab and Azad Jammu and Kashmir (AJK), destroying a mosque and killing dozens of civilians, including women, children, and the elderly. Read More: French intelligence official confirms downing of Rafale by Pakistan In a swift military response, Pakistan's armed forces shot down Indian warplanes, including three Rafale jets. The confrontation intensified again in the early hours of May 10, when India targeted several Pakistani airbases with missile strikes. In retaliation, Pakistan launched Operation Bunyanum Marsoos, damaging Indian military installations, including missile storage sites, airbases, and other strategic targets. On May 10, US President Donald Trump announced that a ceasefire had been reached following intense diplomatic efforts overnight. Minutes later, the agreement was confirmed separately by Foreign Minister Ishaq Dar and the Indian foreign secretary.
Express Tribune
36 minutes ago
- Express Tribune
Trump to speak with Putin today, possible Zelenskiy call Friday
According to the Financial Times, Trump and Zelenskiy are expected to discuss the recent halt in key US weapons deliveries to Kyiv. PHOTO:FILE Listen to article S President Donald Trump said he will speak with Russian President Vladimir Putin on Thursday, while a Ukrainian source told Reuters that Trump may speak with Ukrainian President Volodymyr Zelenskiy on Friday. "Will be speaking to President Putin of Russia at 10:00 A.M. Thank you!" Trump wrote on his social media platform. He did not disclose the topics of discussion. According to the Financial Times, Trump and Zelenskiy are expected to discuss the recent halt in key US weapons deliveries to Kyiv. Zelenskiy is likely to raise the issue of future arms sales during the call, which may be rescheduled, the newspaper said, citing sources familiar with the planning. The White House did not respond to a Reuters request for comment on the reported Zelenskiy call. The US has paused shipments of some critical weapons to Ukraine due to low stockpiles, sources previously told Reuters. This prompted Ukraine to summon the acting US envoy in Kyiv on Wednesday to stress the importance of continued US military support. Ukrainian officials warned that reduced assistance would weaken their ability to defend against increased Russian airstrikes and advances on the battlefield. Reuters reported on Wednesday that the Pentagon's decision has led to a cut in deliveries of Patriot air defence missiles, which Ukraine relies on to intercept fast-moving ballistic threats.
Business Recorder
an hour ago
- Business Recorder
TSX hits record high as investors assess economic data, trade talks
Canada's main stock index hit a record high on Thursday as investors assessed economic data from Canada and the United States, while a U.S.-Vietnam trade pact renewed optimism about global trade agreements ahead of the July 9 tariff deadline. The S&P/TSX composite index gained 0.3% at 26,952.6 points. Data showed that Canada's trade deficit in May was as expected and narrowed after April's record-breaking numbers as total exports rose, and imports fell. Exports and imports to the U.S. dropped to their lowest levels in May, excluding the pandemic year of 2020. Meanwhile, U.S. President Donald Trump signed a trade deal with Vietnam on Wednesday. 'It looks as if we're moving towards more certainty with respect to the tariff situation…as we get closer to an outcome that's so positive, the markets begin to get a little bit excited,' said Robert Gill, portfolio manager at Fairbank Investment Management. On the TSX, technology stocks led sectoral gains with a 1.4% rise. Cybersecurity firm BlackBerry rose 3.3%. Conversely, an index of communication stocks fell about 1%. Energy stocks fell 0.5% tracking a decline in oil prices. Nuvista Energy fell 3.2% after announcing updated annual production guidance due to third party midstream delays. Mining shares edged 0.2% lower, tracking a fall in gold and copper prices. Copper miners Capstone Copper down 2.1%, Teck Resources down 2.3%, and Ero Copper down 2.7%, were among the bottom performers on the main index. Also supporting market sentiment was the Trump administration lifting export restrictions on Chinese-bound shipments from chip design software developers and ethane producers. In the U.S., data showed job growth was solid in June while the unemployment rate fell to 4.1%. Additionally, the U.S. House of Representatives advanced Trump's sweeping tax-cut and spending bill, paving the way for a possible vote on the legislation later in the day ahead of the July 4 holiday.
