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US India Trade Deal: What is America's demand regarding import duty on farm products?


The trade deal between India and America is stuck over the issue of import duty on agricultural products. For the trade deal, America is demanding reduction in import duty on its genetically modified (GM) food like corn and soybean.

According to media reports, America wants these products to be sold cheaply in India. At the same time, the Indian government does not want to reduce the import duty to protect the farmers from loss. Indian officials believe that if cheap GM food from America comes to India, then it will be difficult for Indian farmers to sell their crops.

In such a situation, the deal is stuck. It seems difficult to find a solution before the deadline of July 9.

Under the proposed trade deal both countries want to increase trade by reducing import duty on each other's goods. India wants zero tax on its textiles, leather, medicines, and some engineering goods sold in the US, while the US wants markets in India for its agricultural and industrial products.

Bid to finalise the deal by 9 July

There is an attempt to finalise the deal by 9 July 2025 deadline. If no agreement is reached by this date, the US can impose 26% duty on Indian goods.

US wants India to reduce import duties on GM crops 

The US wants India to reduce import duties on GM crops (corn, soybeans) and other agricultural products. It also wants tariffs on medical devices and relaxation in data localisation rules. The US is also demanding lower duties on its dairy products, vehicles, and goods such as whiskey.

India will not open agricultural and dairy markets

India has refused to accept the US demands, especially the demand to open agricultural and dairy markets. India says that this will harm millions of poor farmers. Indian products will not be able to compete with American products. India has said that if the US imposes tariffs on steel and automobiles, we will also impose retaliatory tariffs.


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