Is the India-US trade deal on track? Trump shares new update

India Today

5 days ago

India could face higher US tariffs ranging between 20% and 25% if ongoing trade talks between the two countries do not lead to a deal before August 1. US President Donald Trump made the remarks while speaking to reporters on Tuesday, reported Bloomberg.'I think so,' Trump said when asked whether the possible tariff rate on India would be between 20% and 25%. Speaking aboard Air Force One on his return from Scotland, the president added, 'India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can't do that.'Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the major drag on the market continues to be the negative news on the India-US trade front."President Trump's comment that India may have to pay 20-25% tariff is very negative from the short-term market perspective," he added.Trump had earlier announced higher tariffs in April but delayed them by introducing a reduced 10% levy to allow room for negotiations. With the August 1 deadline approaching, pressure is building on both countries to make progress.The expected move is part of a broader set of reciprocal tariffs planned by the US for several trading partners. According to a Reuters report, New Delhi is preparing for the possibility that tariffs may increase sharply, possibly up to 25%.Meanwhile, a sixth round of trade talks between the two countries is scheduled to take place in India on August 25, as confirmed by a government official, reported PTI. This will follow the fifth round of discussions, which ended recently in Washington.Talks between the two sides have been ongoing for several months, but a full agreement still appears to be some way off. Differences remain, especially around market access and tariffs on certain key products.Speaking to CNBC on Monday, US Trade Representative Jamieson Greer admitted that more discussions were needed. 'We continue to speak with our Indian counterparts, we've always had very constructive discussions with them,' he said.'They have expressed strong interest in opening portions of their market. We of course are willing to continue talking to them. But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.'Greer also pointed out that while he had earlier hoped for a deal soon, India's long-standing policy of protecting its domestic markets had slowed things down.The current talks are part of a larger effort to reach a bilateral trade agreement between India and the US. Though both sides have shown interest, progress has been slower than expected.- EndsMust Watch
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