India-US interim trade pact a step toward bigger bilateral deal, says former USTR official

The much-anticipated interim trade deal between India and the United States is not just about resolving immediate tariff issues—it’s the first step toward a much broader, comprehensive agreement, according to Mark Linscott, former Assistant United States Trade Representative (USTR) and current Senior Advisor at the US India Strategic Partnership Forum (USISPF).In an interview with CNBC-TV18Linscott said, “This is just the first bite at the apple… Prime Minister Modi and President Trump back in February agreed to begin negotiations on a comprehensive agreement.”
Talks have gained momentum ahead of a critical July 8 deadline, when the suspension period on India’s 26% reciprocal tariffs is set to expire. “I think we are very close, perhaps a matter of weeks, if not even days,” Linscott noted, pointing to substantial progress on both sides. A US delegation is expected to visit India next month, raising expectations that the deal could be finalised by the last week of June.
The interim deal is expected to roll back some of the reciprocal tariffs imposed on April 2 and expand market access in key sectors. “I think it will cover a lot of tariffs on both sides… it will cover a number of sectors, industrial and agriculture,” Linscott said.Agriculture is expected to see mutually beneficial gains. India could allow imports of US grains like sorghum and Distiller’s Dried Grains with Soluble (DDGS), which are used as livestock feed—potentially helping reduce input costs for Indian poultry producers. In return, Indian exports in sectors like leather, textiles, and grapes may get greater access to the US market.

While India has been pushing for zero-for-zero duties across the board, Linscott believes that’s unlikely. He said President Trump has been firm on maintaining an average tariff of around 10%, though there may be exceptions in specific product categories like auto parts, textiles, and leather. “I think the average we can expect on the US side, and perhaps in response on the Indian side as well, is 10%,” he said.

Companies like Tesla could also stand to gain if electric vehicles are included in the final deal. “If it covers autos and electric vehicles, that could be hugely beneficial for Tesla, at least for production in the United States,” Linscott said, noting that the benefits would not extend to Tesla’s production facilities in other countries.

The interim pact, if signed, could pave the way for more comprehensive trade negotiations, creating new opportunities across sectors while stabilising India-US trade relations that have been under strain from retaliatory tariffs.

Watch the accompanying video for the entire conversation.