Deal team dials PMO as US balks

Negotiators seek intervention on trade-offs as Trump sits on pact

- Dhirendra Kumar

India's commerce and industry ministry has sought guidance from the Prime Minister's Office (PMO) on the trade-offs required for the final breakthrough in the trade pact with the US, as the American demand for tariff cuts on farm products remains a sticky point, said two people aware of the matter.

The negotiators have sought the PMO's intervention in finalizing the first tranche of the India-US Bilateral Trade Agreement (BTA), as President Donald Trump has neither accepted nor rejected the deal even after approval by the United States Trade Representative, the people said, speaking on the condition of anonymity.

While the initial working deadline was July 8, the US has now extended the window until the end of the month in view of the complexity of the unresolved items and the evolving trade posture under the second Trump administration. He has already issued letters to 22 other countries, disclosing new reciprocal tariff rates of up to 50%.