The United States and India are close to reaching an interim trade agreement, and Indian tariffs are expected to be reduced to less than 20%

The US is working on an interim trade deal with India that would reduce tariffs on the country to less than 20 per cent, according to people familiar with the matter. Unlike a number of countries that have been notified of tax increases this week, India is not expected to receive a letter of demand for tariffs, and the two sides could announce the trade arrangement through a joint statement, the people said. The interim deal would set the stage for continued negotiations, giving the Indian side room to resolve outstanding issues ahead of a comprehensive deal expected this autumn. The statement could set a benchmark tariff rate below 20 per cent, compared with 26 per cent initially proposed, and contain provisions allowing the two sides to continue negotiating rates for a final deal, the people said. The exact timing of the interim deal is unclear. If it is finally reached, India will become one of the few trading partners to reach an agreement with the Trump administration.