India and the United States are very close to finalising a trade agreement. The White House has confirmed, with key negotiations entering final stages of a crucial July 9 deadline. The straight focuses on agriculture, tariffs on dairy, autos, GMOs, textile, gems, and chemicals. The interim deal announcement is expected ‘very soon’.
The 0.5% drop in US GDP in Q1 2025 is strongly tied to tariffs. However, this included more imports made by US businessmen. It was an important move, to bring goods in ahead of the Trump tariff. As a result of which, GDP drops, and foster economic weakness.
Moreover, this ties up a strong connection in India- US bilateral trade deal. Now the US wants low tariffs on American agriculture, dairy products, and it wants to expand its GMO market access. Meanwhile, India wants to expand its business in textiles, gems and jewellery, automobiles, and other sectors.
Now, the tariff pauses to deal with the timeline, 90 day falls on reciprocal tariffs. It has been confirmed by the White House that negotiators are finalizing a trade agreement by then.
The urgency by the 9 July deadline shows the efforts to strong Economic drag and stabilize trade flows. Trump comes forward to frame it as a part of strategic partnership with India.
This is directly connected with US GDP. The decline was a spell over of broad tariff policies. The India US bilateral trade deal will avoid repetition of import and give a chance to stabilize and consumers pending to recover.