• US President Trump refuses to extend the 90-day pause on tariffs beyond July 9.
• India seeks trade agreements addressing significant sectors, including agriculture and dairy.
• Negotiations are intense, with an emphasis on lowering tariffs to enhance competitiveness.
• Both nations aim to finalize a Bilateral Trade Agreement to boost bilateral trade significantly.
• The outcome may impact millions of farmers in India amidst ongoing tensions regarding agricultural concessions.

As the deadline of July 9 approaches, US President Donald Trump has confirmed he does not plan to extend the 90-day pause on additional global tariffs, stating, "I don't think I'll need to." This pause allows for negotiations between India and the US, during which India's trade delegation has been working intensively to secure an agreement that avoids a 26% reciprocal tariff set for imposition after the deadline. The Indian delegation, extended in Washington, is dedicated to finalizing an interim trade pact before the tariff hike takes effect, amidst the complex negotiations characterized by both parties' substantial demands, according to India Times.

Key issues during the negotiations revolve around India's reluctance to grant concessions affecting its crucial agricultural and dairy sectors, crucial for protecting local farmers. Although India initially aimed to secure exemptions on new tariffs, the US demands transparency and access to significant markets for items such as genetically modified crops, which India has resisted. The impasse reflects broader strategic interests, as both sides are pushed to finalize direction on agriculture and other industries such as auto components and energy, reports BBC and India Times.

Treasury Secretary Scott Bessent remarked that the discussions with India are "very close," with hopes that the two nations will mitigate a significant tariff increase that could hurt both economies. Indian officials, led by negotiator Rajesh Agrawal, are working to bridge gaps and ensure competitiveness in negotiations reflecting local interests. Both countries aim to elevate bilateral trade to $500 billion substantially by 2030, highlighting the importance of moving beyond mere tariff adjustments to a broader trade agreement, as emphasized by India Times and Reuters.

Indian officials are increasingly firm on critical concessions they can make, especially regarding sensitive agricultural portfolios, where they seek to maintain protection for small farmers in the rural economy. This firmness stands against the US demands for greater access to the Indian agricultural market, which could pressure local economic structures and political stability. As India seeks to secure tactical advantages in labor-intensive sectors such as textiles and engineering, the US aims for a comprehensive deal, potentially reflective of wider geopolitical dynamics in trade, as discussed by Channel News Asia and India Times.