The U.S. is reportedly nearing an interim trade deal with India that could see proposed tariffs drop below 20%, a significant break from the sweeping hikes facing other nations.

Unlike peers in Asia bracing for import levies as high as 50% ahead of an August 1 deadline, India may escape a formal tariff demand letter entirely.

According to a Bloomberg report, the trade pact, expected to be announced via joint statement, would allow room for continued negotiations while cementing a lower initial duty rate of under 20%, compared with the 26% initially proposed.

The prospective deal positions New Delhi advantageously. U.S. President Donald Trump has so far unveiled agreements only with Vietnam and the UK, while warning that most other partners will face blanket tariffs of 15% to 20%. 

Vietnam was caught off guard by its 20% rate and is still pushing to reduce it.

If finalized, India would join a small group of nations securing trade relief from Washington at a time when Trump is pressuring dozens of partners with tariff spikes. 

Tariffs already announced for Asia range from 20% for Vietnam and the Philippines to 40% for Laos and Myanmar.

The Bloomberg report claimed that New Delhi is angling for better terms than Vietnam received, and that Indian negotiators will soon head to Washington to continue talks. India has made its final offer clear and marked red lines it will not cross, including resistance to opening markets to genetically modified crops—citing risks to farmers. Business Today could not independently verify the developments.

Sticking points remain, especially on non-tariff barriers in agriculture and pharma regulations. But the interim arrangement would buy time for both sides to resolve these issues before a broader pact expected in the fall.

The Indian Ministry of Commerce and Industry, the White House, and the U.S. Commerce Department did not respond to the Bloomberg story.