Indian finance minister states New Delhi draws ‘red lines’ in US trade talks
(MENAFN) India has firmly drawn boundaries in its trade negotiations with the United States, with agriculture and dairy sectors being non-negotiable, Finance Minister Nirmala Sitharaman told the Financial Express on Monday. These discussions come ahead of a looming July 9 deadline set by US President Donald Trump, after which reciprocal tariffs will be imposed if a deal isn't reached.
“Agriculture and dairy are major red lines,” Sitharaman said, emphasizing that India will not compromise its farmers' interests. “We have exercised extreme caution to protect these sectors,” she noted.
While expressing support for what she described as a “big and beautiful” trade deal—a phrase echoing Trump—Sitharaman said India remains open to expanding market access and reciprocal openings under fair terms.
She highlighted how new trade discussions now increasingly include issues like environmental standards, carbon taxes, labor rights, gender equity, and government procurement—topics not traditionally central to trade talks. India, she said, is carefully assessing these areas in light of its unique needs as a developing economy.
Back in May, India offered steep cuts in import duties on several goods to help finalize a trade agreement with Washington—excluding sensitive categories like grains and dairy, according to Financial Times. The goal is to reach a pact before the US enacts a threatened 26% tariff on all Indian exports starting July 9.
While the US imposed new duties on Indian goods from April 2, they were temporarily suspended for 90 days. Meanwhile, a 10% base tariff remains in place for some Indian products.
President Trump has previously referred to India as the “tariff king.” In February, New Delhi reduced customs duties on select items such as luxury cars and solar cells—moves seen as goodwill gestures aimed at easing US concerns. The Indian Finance Ministry’s May economic report suggested that a successful trade deal with Washington could shift current economic challenges into positive momentum.
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