India-US trade deal: In February this year, US President Donald Trump and Indian Prime Minister Narendra Modi announced the intent for a trade deal by fall this year. Come April 2025, and Trump announced reciprocal tariffs on a lot of countries, India being one of them.The American President soon suspended his tariffs for a 90-day period giving countries time to strike a trade deal with the US. That deadline of July 9 has now been extended to August 1.A trade deal between India and the US has still not been finalized. Though, there are indications that an interim agreement may be announced soon. Trump’s tariff war has changed the global economic landscape and progress on a trade deal between the world’s largest economy (US) and the soon to be fourth largest (India) is being tracked by experts world over.Here are 10 recent developments in the India-US trade deal talks that you should know about:1) Less than 20% tariff?The United States is negotiating an interim trade agreement with India, aiming to lower proposed tariffs to under 20%, sources with knowledge of the discussions have told Bloomberg. This would give India a competitive advantage over other countries in the region.The preliminary agreement is expected to establish a base tariff rate lower than 20%, in contrast to the 26% that was initially suggested, the report said.2) India officials in US SoonMeanwhile, a delegation from India’s commerce ministry is scheduled to travel to Washington for fresh negotiations with the US, a government official told PTI earlier this week. The discussions will be both for an interim trade deal and the first part of the bilateral trade agreement. The delegation is likely to arrive in Washington next week, the report said.Last month an Indian delegation, headed by chief negotiator Rajesh Agrawal, were in Washington for discussions.Also Read | ‘Unnecessary trade barriers…’: US hits out at India’s dairy certificate requirements at WTO; raises issue amidst trade deal talks3) Donald Trump on a tariff letter spree – but no letter for India so farDonald Trump has been on a tariff letter sending spree this week. While the effective date for the reciprocal tariffs has been revised to August 1 from July 9, Trump has intimated over 20 countries of the tariff rates that will be applicable on their exports to the US.India has not been sent any such letter till now. According to a Bloomberg report, India expects a trade deal announcement soon instead of a tariff demand letter. Any interim trade deal announcement would give both India and the US time to negotiate on the final trade that is expected by fall.4) Trump says deal with India soonEarlier this week, Trump announced that America was nearing a trade agreement with India. “We’ve spoken to everybody. …it’s all done. I told you we’ll make some deals, but for the most part, we’re going to send a letter. We’re going to say, welcome to the United States if you’d like to participate in the greatest, most successful country ever. I mean we are doing better than ever… We’ve never had numbers like this. We’ve never had investment like this. We have more than 90… have much more than 90. But most of those are going to be sent to letter. This is exactly what I said. Now we’ve made a deal with United Kingdom. We’ve made a deal with China. We’re close to making a deal with India,” he said.Also Read | India takes strong stand! Retaliatory tariffs planned against US on steel and aluminium at WTO amidst trade deal talks; check details5) India not working on deadlinesEven as the two countries look to seal a deal, India has made it clear that it is not working on any deadlines. Last week Commerce Minister Piyush Goyal said that a deal would be made keeping national interest in mind.“India never makes a trade deal based on a deadline or timeline; when the deal is good, fully matured, and in the national interest, then we accept it,” he said.“A free trade agreement happens only when there is mutual benefit. When the deal is made while safeguarding India’s interests, keeping in mind that national interest will always remain paramount, then India is always ready to make deals with developed countries,” he added.6) India’s trade deal issuesIndia has maintained a strong position on providing duty concessions to the US for agricultural and dairy products, given their sensitive status. India’s policy has consistently protected its dairy sector across all previous trade arrangements.Additionally, India continues to uphold its ban on genetically modified food crops, which contrasts with the United States’ agricultural practices, where GM varieties dominate corn and soybean cultivation.Unresolved matters persist regarding duties on steel, aluminium (50 per cent) and auto (25 per cent). India is also seeking protection against future tariff hikes by the US.Also Read | Donald Trump’s $5 million Gold Card in demand! Indian professionals from these sectors show big interest; what happens to EB-5 visa?7) India Draws Red LinesIndia has also established clear boundaries regarding the limited trade agreement. During ongoing discussions for the limited trade pact between India and the United States, India has set definitive positions on vital areas, specifically in the agricultural and dairy sectors.“India has drawn its red lines… now the ball is in the US court,” sources told PTI.8) Trump’s BRICS tariff threatAdding to uncertainty around tariff rates is Trump’s latest threat of an additional 10% tariff on BRICS nations for ‘Anti-America’ policies.Trump has issued warnings to BRICS nations opposing the US. “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump shared on Truth Social earlier this week.Also Read | India-US trade deal soon? Donald Trump says so, but India needs to be wary of ‘escalating pressure’; ‘in future US may…’9) Only an interim trade deal for nowIf a trade deal is announced before the August 1 deadline of Trump, it is likely only to be a mini or interim trade deal. Reports have indicated that the interim trade deal would likely leave out the contentious issues of agriculture and dairy products for now.10) India-US WTO tiffMeanwhile, the United States has once again brought up concerns at the World Trade Organisation (WTO) about India’s dairy certification requirements. The US has voiced fresh objections at the WTO, stating that India’s dairy certification criteria create unnecessary barriers for dairy exports from America.The trade disputes between India and the US at the WTO extend beyond dairy matters. India has spoken of retaliatory tariffs against the United States, in accordance with WTO protocols, following American duties on steel and aluminium that were enacted as ‘safeguard measures’.Additionally, India has recently signalled its plans to introduce countermeasures in response to US tariffs on automotive products.However, a government official told PTI that India’s move to maintain its right for imposing reciprocal duties on the US regarding auto parts tariffs is a standard protocol under World Trade Organisation’s safeguard provisions. This will not create any hindrance to the current trade agreement discussions between both nations.