Unlock the White House viewing newsletter for free
Your Guide to what Trump’s second term for Washington, Business and the world means
India is well on its way to sealing a temporary trade agreement with the United States as soon as Donald Trump’s “Liberation Day” tariffs, according to two people informed about the talks.
The interim agreement, which would be among the first with a major US trading partner, would be an initial step towards a comprehensive bilateral agreement between Washington and Delu Delhi. The two countries said they would try to finalize the first tranche of the full deal by the fall.
India It faces tariffs of as much as 26 %, among the highest against the big economy, under Trump’s taxes on April 2. The US president has appointed July 9 for new trade agreements to avoid taxes.
Rajes Agarval, who led the Indian delegation, was in Washington on Monday to try to iron the final details of the deal. S Jaishankar, Foreign Minister in India, is expected to hold one-on-one talks with his US counterpart Marco Rubio on Tuesday or Wednesday on the sidelines of a meeting in Washington.
According to people briefed on talks, the deal is expected to spare the big Indian and Politically influential agricultural marketsIncluding wheat and dairy products, we tariffs, although they noticed that talks are still ongoing.
A senior Indian government official, who demanded not to be named, said there was “very sensitivity” to its agricultural markets.
Business briefing for India
The Indian professional must read about business and politics in the fastest growing big economy in the world. Sign up for the newsletter Here
India has also agreed to import more natural gas than the United States to overthrow its trade surplus, which amounted to $ 41.2 billion for the financial year 2024-2025, according to people close to the Indian government.
The two sides agreed to reduce tariffs from one or both sides of thousands of items.
Countries have committed more than twice as much as bilateral trade in $ 500 billion by 2030 during a visit by Indian Prime Minister Narendra Modi to Washington in February. Trump promised on Thursday a “very big” trade deal that will “open India”. The next day, he said his administration “demands to reduce the full barrier, which is unthinkable.”
Agriculture and dairy products remain sensitive.
India has managed to protect its milk sector from foreign competition in other trade talks, including Negotiations with the EU. The sector employs more than 80 million people, according to the Government of India, many of whom are small owners.
In India, there are concerns that foreign dairy products can come from cows that have been grown on feed containing cattle products, which makes them beyond the borders for the richer Hindus.
Another person with direct knowledge of talks said that India had agreed to import US farm products, such as nuts and fruits, despite lobbying in the US market access industry.
On Monday, White House Secretary Carolyn Levitt said US authorities are “finalizing” trade agreements. “Hear the president and his team, his trade team, very soon, when it comes to India,” she said.
Modi’s government has accepted a more energetic trade agenda this year, concluding a long -awaited agreement with the UK In May, announcing plans to reach the EU pact by the end of 2025.
Delou Delhi and Washington have forged closer defense, technology and diplomatic links in the joint front against China in recent years, and Trump has imposes India to buy more American weapons in order to facilitate its trade deficit.
However, Modi government openly opposed last month after Trump claimed a loan to terminate a short but bloody conflict with Pakistan and offered to mediate above the disputed territory of Kashmir.
Source link
