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India resists tariff cuts without U.S. commitments:

sources

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Seeking a waiver from 26% reciprocal tariffs, lower steel

tariff

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A delegation expected to travel to Washington ahead of

deadline

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Modi, Trump agreed for first tranche of broad trade pact

by fall

By Manoj Kumar

NEW DELHI, June 26 (Reuters) - Trade talks between India

and the U.S. have hit a roadblock over disagreements on import

duties for auto components, steel and farm goods, Indian

officials with direct knowledge said, dashing hopes of reaching

a deal ahead of President Donald Trump's July 9 deadline to

impose reciprocal tariffs.

The deadlock marks a sharp shift from earlier optimism,

following Trump's claim that New Delhi had proposed a "no

tariffs" agreement for American goods, and officials from both

sides suggesting India could be among the first countries to

strike a deal on the new U.S. tariffs.

India is pushing for a rollback of the proposed 26%

reciprocal tariff set to take effect on July 9, along with

concessions on existing U.S. tariffs on steel and auto parts.

But U.S. negotiators have not yet agreed to the demands, three

Indian government officials told Reuters.

"The U.S. side first wants India to commit to deeper import

tariff cuts on farm goods like soybeans and corn, cars and

alcoholic beverages along with easing of non-tariff barriers,"

leading to disagreement between the two sides, one of the

sources said.

The sources spoke on condition of anonymity, citing the

confidentiality of the ongoing discussions.

India's commerce ministry, the U.S. Embassy in New Delhi and

the U.S. Trade Representative Office did not immediately respond

to requests for comment.

An Indian delegation is expected to travel to Washington

before the deadline, although discussions may now focus on a

broader agreement rather than a rushed interim deal, a second

Indian government source said.

Prime Minister Narendra Modi is trying to position India

as a key U.S. partner, seeking to attract U.S. firms like Apple ( AAPL )

, diversifying supply chains away from China.

But trade talks have struggled to make headway.

"We are keen, but not desperate to sign a deal before the

July 9 deadline," the first source said, adding that India has

offered tariff cuts on almonds, pistachios, walnuts, and was

willing to extend preferential treatment for American imports in

sectors like energy, autos and defence.

"There hasn't been much progress despite several rounds of

talks," the second source said.

Still, the sources did not rule out a last-minute

breakthrough if Modi and Trump choose to intervene directly.

LONG TERM PARTNERSHIP

Despite the impasse, Indian officials stress long-term

commitment to the U.S. as a trusted economic partner, while

maintaining policy independence.

Modi and Trump agreed in February to conclude the first

phase of a bilateral trade agreement by autumn 2025 and to

expand trade to $500 billion by 2030, from about $191 billion in

2024.

India is also advancing talks with the European Union for a

free trade pact later this year, and recently concluded talks

for a FTA with the United Kingdom - moves aimed at hedging

against potential U.S. policy shifts under Trump.

"The ball is now in the US court. India is not for any

win-lose trade partnership," said Ram Singh, head of the Indian

Institute of Foreign Trade, a government funded think-tank.

Even in a worst-case scenario, a third official said, India

could absorb the impact of reciprocal tariffs, citing its

continued tariff advantage over competitors like Vietnam and

China.

India's exports to the U.S. rose to $17.25 billion in

April-May, up from $14.17 billion a year earlier, suggesting the

U.S. tariff hikes averaging 10% in early April had a limited

impact.