Indian officials are planning to continue negotiating with the US for a bilateral trade deal by fall of this year even if US President Donald Trump follows through with threatened tariffs this week, people familiar with the matter said.

The stakes are high, with the United States and India counting on each other as indispensable partners in their competition with China.

With the US tariff deadline looming, an India-US trade deal appears unlikely, though a last-minute breakthrough remains possible. Trump has hinted at tariffs of 20-25% on Indian goods, while India anticipates these as a temporary measure during ongoing negotiations.