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Imagine you're selling your handmade toys to a friend. Suddenly, your friend says, 'From now on, you'll have to pay me extra to sell here, unless we make a special deal.' That's kind of what's happening between India and the United States right now.
The US might soon start charging extra taxes (called tariffs) – up to 26% – on things India sells to them. This could start on August 1. Other countries like Japan and those in Europe have already made deals with the US to keep these taxes low. But India's deal is not final yet, even though there have been talks for months.
So, will this 26% tax actually happen? Nobody knows for sure. The US President, Donald Trump, sometimes changes his mind last minute. But we can't count on that. Other countries like Vietnam, Indonesia, and the Philippines have already made better deals. Their goods will get taxed less, making them cheaper in the US. That's bad news for Indian businesses because buyers in America may stop buying Indian goods and choose cheaper ones from other places.
India has a big and growing market, and America wants to do business here too. That gives India some power in the talks. But India still has to be careful. Even rich countries like Japan and the European Union had to agree to some pretty tough demands to avoid a trade war with the US.
One strange promise was from the EU to buy $750 billion worth of US energy, even though the US doesn't even produce that much in a year! So, some promises in these deals aren't very real.
The bottom line? India has to act smart and fast. If we don't sign a good deal soon, our products may become too expensive in the US, and that could hurt our businesses and workers.
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