India, US lay groundwork for $500-billion trade agreement

With just a week to go before the retaliatory tariff of 16% on imports from India to the US kick in, all possibilities remain, according to officials familiar with the matter: no deal, with sensitive issues such as US exports of dairy products and agricultural produce, scuttling one; an early deal with both countries dropping sensitive items from the contours of an agreement; and, while the probability of one is low, a big trade deal, as US President Donald Trump has said time and again.

- Rajeev Jayaswal & Rezaul H. Laskar

The first eventuality could see the tariffs kick in (on top of 10% that came into effect in April); while the second and third could help Indian exports to the US escape them. To be sure, the people clarified, the first would not affect the larger deal that is being discussed.