ISLAMABAD: Top officials of the United States Trade Representative (USTR) are finalising trade deals with India, Pakistan and Bangladesh ahead of July 9 deadline to avert the punitive US tariffs, say western digital and print media outlets.
As for Pakistan, according to government officials, the US imposed a 29% reciprocal tariff on Pakistani exports in early April (due to a roughly $3 billion trade surplus), with a 90 day pause to negotiate.
“Pakistan responded swiftly, constituting high-level steering and technical groups, consulting over 50 private-sector stakeholders (textiles, leather, surgical goods), and preparing offers to lower tariffs on about 55 products under the WTO rules.
Formal talks began on May 30 via telecom between the Ministry of Finance and USTR.
Pakistan, they said, is proposing a hike in US imports (cotton, soybeans, edible oils) with incentives for US investment in mining (especially Balochistan’s Reko Diq) and tariff reductions on select imports (aligning with FTA China levels) within the WTO norms.
“A second negotiation round was held June 17–18 via video/phone between Finance Minister Aurangzeb, Commerce Secretary Lutnick, and USTR Jamieson Greer. They agreed to fast track a roadmap, enter technical-level discussions, and reach a deal “as soon as possible”.
The 90 day tariff pause expires on July 9. If no deal is in place, the 29% tariffs could be reinstated, jeopardizing $5 billion in Pakistan’s annual US exports, predominantly in textiles. Pakistan’s finance think tanks warn of a 20–25% export drop, amounting to $1–1.4 billion in lost revenue.
However, as far as India is concerned, as per its main media, a delegation led by Commerce Minister Piyush Goyal (previously led by Additional Secretary Rajesh Agarwal in April) is in Washington for a fresh round of trade negotiations. The goal is to wrap up an interim trade deal by July 9, when the Trump administration’s 90-day pause on reciprocal tariffs expires.
Trump has repeatedly teased a “big, beautiful” trade deal with India after slapping it with a 26 percent tariff rate earlier this year.
As per www.independent.co.uk, India is banking on a potential deal with its largest trading partner to boost bilateral trade from $190bn to $500bn by 2030. India’s average tariff rate is around 17%, significantly above the US rate of 3%
India charges 150 percent tariff on import of whiskey from USA, 100 percent on motorcycles such as Harleys and up to 40 percent on medical devices. The two nations are racing to clinch a deal, which would be Washington’s first with a major trading partner after the UK.
However, after taking the office for his second term in January, Trump branded India a “tariff king” and a “big abuser” of trade ties with the US. In April, he imposed a 26 percent tariff on Indian goods. Although steep, the levy was lower than the total 104 percent imposed on China, 49 percent on Cambodia, and 46 percent on Vietnam.
The new levy followed earlier tariff hikes, including a 50 percent duty on Indian steel and aluminum, prompting New Delhi to seek exemptions and concessions.
In the latest statement on the topic, White House press Secretary Karoline Leavitt reaffirmed Trump’s claim that a deal with India was near completion.
However, according to foreignpolicy.com, trade analysts say this isn’t just about reducing tariffs, it’s also about resetting strategic ties. A deal would serve as a confidence-builder amid recent tensions, paving the way for cooperation on defense, energy, tech, and higher education.
India has firmly drawn a line around its agricultural sector. US negotiators are pushing for tariff reductions on dairy, poultry, corn, soybeans, ethanol, GM crops, etc. India is resisting, concerned about the impact on its rural economy (supporting nearly half the population) and its ethanol blending program.
To gain US concessions, India may lower tariffs on other US goods, such as walnuts, cranberries, medical devices, autos, and energy equipment. It has already made moves like reducing duties on bourbon whiskey, motorcycles, and considering cuts on nuts and lentils.
The deal could be a strategic reset, reducing friction in trade while signaling stronger US–India alignment. Agriculture remains India’s “red line.” A limited interim deal by July 9 is likely; more comprehensive negotiations are expected later.
As for Bangladesh, the US-BD talks on trade began in April and by July3-4, a high-level meeting between USTR and BD officials concluded without a major decision. However, a follow-up meeting is scheduled on July 8, 2025 just ahead of the 90 day pause expiration on July 9.
In 2024, total US–Bangladesh goods trade was about $10.6 billion, comprising US exports to Bangladesh of $2.2 billion (machinery, agricultural commodities, iron & steel) and US imports from Bangladesh of $8.4 billion (mostly RMG, footwear, textiles) putting the US at trade deficit of $6.2 billion.
