India has rejected U.S. demands for unilateral market access in dairy, digital services, and agriculture, warning Washington that future trade cooperation depends on reciprocity—not coercion.
At a Glance
- India rebuffed U.S. demands for sweeping access in dairy, agriculture, digital services, and pharma
- New Delhi rejected “take-it-or-leave-it” conditions during June 4–10 talks
- The U.S. blocked India’s WTO request over auto tariffs, citing national security
- Trade talks were extended as both sides race toward a July 9 interim deal deadline
- India seeks tariff reciprocity while protecting sensitive domestic sectors
U.S. Demands Met With Firm Indian Resistance
At high-stakes negotiations in New Delhi earlier this month, India rejected what it described as “take-it-or-leave-it” trade demands from the U.S. These included calls for access to India’s tightly regulated dairy and agricultural markets, greater digital service penetration, and looser pharma export restrictions. Indian officials made clear they would not accept a one-sided deal.
WTO Tensions Over Auto Tariffs
Meanwhile, India’s request for WTO consultations over U.S. auto tariffs was flatly rejected by Washington, which invoked the WTO’s “essential security exception.” India contends the 25% tariff on auto components is a disguised safeguard measure and has reserved the right to retaliate if bilateral dialogue fails.
Talks Extended, Deadline Nears
Despite the tension, trade talks have been extended ahead of a July 9 deadline for an interim pact. U.S. negotiators are reportedly seeking early deliverables on agriculture and digital trade, while India is pushing to formalize cuts to tariffs on steel, aluminum, and auto components.
India’s External Affairs Minister S. Jaishankar affirmed efforts to secure a first-phase agreement before the tariff respite expires, stating India is “hopeful of reaching an agreement” despite sticking points.
Strategic Stakes and Sovereignty
At the heart of the standoff is India’s insistence on tariff reciprocity. While the U.S. wants market access at its low 2–5% tariff levels, India is pushing for its own exports to be treated equally—especially in sectors critical to its “Atmanirbhar Bharat” (self-reliant India) campaign.
The coming weeks will test whether the world’s two largest democracies can strike a deal that respects economic sovereignty while deepening strategic alignment. As the July 9 deadline approaches, the next round of talks may determine the shape of U.S.–India trade for a generation.
