India US trade deal (Social Media)
International News: Trade negotiations between India and the United States are moving into the final phase, with both nations close to concluding a limited trade agreement, often referred to as a “Mini FTA.” Sources suggest that this interim deal could be sealed by September or October, aimed at resolving key tariff-related concerns before the Trump administration’s looming deadline.
A high-level Indian delegation recently returned after the fifth round of bilateral talks, held on July 19 in the US. It is now expected that American trade officials will visit India by mid-August. However, US President Donald Trump has already announced a firm August 1 deadline, after which he may initiate additional tariff measures.
Speaking to a news channel, US Commerce Secretary Howard Lutkin clarified the seriousness of the August 1 deadline, stating, “Talks won’t end after August 1, but it’s a hard deadline. From that date, we will begin imposing new tariffs.” To avoid these proposed duties—especially on steel, aluminum, and auto parts—India is hoping to wrap up the mini trade deal in time.
According to trade analysts, if the agreement is delayed and the US imposes a 26% tariff, the impact on India would be manageable. Still, New Delhi is proceeding cautiously, particularly in sensitive sectors such as agriculture, dairy, and automobiles. The Indian side has already declined certain US demands for concessions in the dairy segment, citing domestic sensitivities.
India has urged the US to lift the additional 26% tariffs and reduce the base duties of 50% on steel and aluminum and 25% on automotive exports. Additionally, India is pushing for greater flexibility for its textile exports. Indian negotiators maintain that under WTO rules, they are entitled to impose reciprocal duties on American goods if negotiations fail.
In return, Washington is seeking lower import duties on a range of products including industrial goods, electric vehicles, petrochemicals, wines, and certain agricultural commodities. US officials want these sectors to receive tariff relief to allow American companies to compete more effectively in the Indian market. As the clock ticks down to the August 1 deadline, both sides are working swiftly to finalize the terms of the mini agreement, aiming to avoid an escalation in trade tensions.
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