Trump optimistic on US-India Trade Deal, cites ‘much less tariffs’

US President Donald Trump has stated that the United States and India are nearing a trade deal that will significantly reduce tariffs. This announcement comes amidst intense negotiations, with both sides working to finalize a Bilateral Trade Agreement (BTA) before a critical July 9 deadline.

The current talks are focused on preventing the reimposition of a 26% reciprocal tariff on Indian goods, which was temporarily suspended for 90 days in April. While a 10% baseline tariff remains in place, failure to reach an agreement by the deadline would see the higher tariffs automatically resume.

US-India Trade Deal: Key points of the ongoing negotiations include:

Tariff Reductions: Trump’s statement emphasizes “much less tariffs” to enable fair competition between US and Indian companies.

Agricultural Access: The US is pushing for reduced duties on agricultural products, including apples, tree nuts, and genetically modified crops, and is keen to access India’s large farm market.

India’s Stance: India has adopted a firm stance, particularly on its agricultural and dairy sectors, which are politically and economically sensitive and support millions of small-scale farmers. India has historically been reluctant to open its dairy sector to foreign competition.

India’s Demands: India is seeking preferential access for its labor-intensive exports, such as textiles, garments, gems and jewelry, leather goods, and certain agricultural products like shrimp and bananas.

Experts suggest that a “mini-deal” is a likely outcome, where India might offer tariff cuts on industrial goods and select farm products, while the US could push for purchases of oil and aircraft or easing rules for large retailers. The success of these talks in the coming days will determine whether both sides avoid a tariff escalation and move closer to their ambitious trade targets.

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