How does the July 9 tariff deadline impact India's Negotiation strategy?

How does the July 9 tariff deadline impact India's 

Negotiation strategy?

 

The July 9 deadline primarily concerns the reimposition of the U.S.’ reciprocal tariffs. While India expresses a desire to finalize a trade deal before this date, its negotiation strategy indicates that it is not "desperate" to meet this deadline.

 

Several points highlight India's approach to the deadline:

 

•Lack of Desperation: The Indian government is not "desperate" to conclude a deal by July 9. Sources indicate that even if the deadline is missed, the tariffs will simply revert to April 2 levels. It is also noted that the tariff increase won’t hurt India more than other countries, as the U.S. has not signed elaborate trade deals with many other nations.

 

•Sensitivity of Key Sectors: The primary challenges preventing a deal before July 9 are the agriculture and dairy sectors. These are considered "sensitive" sectors, especially dairy, and India wants to be very careful in negotiations concerning them. This caution suggests that India prioritizes protecting these sectors over rushing to meet the deadline.

 

•Ongoing Negotiations Despite Challenges: Despite the challenges in meeting the July 9 deadline due to existing differences, India's team plans to continue discussions with the U.S. for the next round of in-person meetings. These discussions will cover both a "mini deal" and the first part of a Bilateral Trade Agreement (BTA), with the timeline for the BTA set for Fall. This indicates that negotiations are viewed as an ongoing process beyond just the immediate July 9 target.