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The US set a deadline to finalize the deal or start new tariffs, but with little compromise from both sides, meeting this deadline seems impossible.
The main problem is that the US wants India to reduce taxes on farm and dairy products, but India refuses to do so to protect its farmers.
The US set a deadline to finalize the deal or start new tariffs, but with little compromise from both sides, meeting this deadline seems impossible.
India insists on keeping the option to add new tariffs on US goods in the future, which worries the US negotiators.
Multiple rounds of talks have happened, but neither country has made big compromises, causing a stalemate.
Both India and the US still hope to reach a more complete trade agreement by September or October.
If no deal is reached, the US may impose new taxes on Indian goods, making trade between the two countries more difficult for a while.
While not directly related to trade, Pakistan’s military chief Asim Munir’s hardened stance and regional tensions make India cautious in international deals, indirectly affecting the trade atmosphere.
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