India seeks urgent trade deal with US ahead of tariffs

India is currently pursuing an interim trade agreement with the United States, seeking to reach a pact before July 2025. This effort is particularly significant as tensions have been rising between the two nations. New Delhi officials revealed insights to Bloomberg, indicating that an initial agreement—part of a more extensive three-phase deal—is anticipated to be finalized prior to the implementation of reciprocal tariffs imposed by U.S. President Donald Trump. Recently, India’s Commerce Minister expressed that discussions in Washington with his U.S. counterpart were productive but pointed out the uncertain path ahead. In the backdrop of these negotiations, India had initially extended several proposals during earlier trade discussions. However, in the past week, the Indian government adopted a firmer position, warning of retaliatory tariffs against the U.S. measures. Analysts suggest that this shift reflects India's response to the growing economic pressures from the U.S. and a desire to protect its own market interests. The complexities in these negotiations are further compounded by President Trump’s assertion that he leveraged trade issues to mediate a truce between India and Pakistan, a claim that New Delhi has publicly dismissed. Meanwhile, Japan is also dealing with the ramifications of the U.S.'s trade policies. The country recently reported a slowdown in export growth for a second consecutive month, attributed in part to the 25% tariffs imposed by Trump on automobile imports, effective since April 3, 2025. Although Japan's exports increased 2%, this was the slowest growth rate since October of the previous year. Japan recorded a decrease in imports by 2.2% compared to a year earlier, which was less than expected. Overall, these trade discussions illustrate the intricate dynamics involved as countries such as India and Japan navigate the challenges posed by U.S. tariffs. Both nations exhibit a mix of willingness to negotiate and readiness to retaliate, highlighting the delicate balance they must strike to protect domestic interests while engaging in international trade.