Key adhesive points remain the same as Mint 11 June. “The final section of business interviews in India-USA focused around sensitive sectors such as dairy products, agriculture, digital, genetically modified (GM) seeds and medical services, while Washington promotes a greater approach, while the new Delhi is looking for a balanced agreement that protects its vital sectors.”
Since the US ended the pause on mutual tariffs on July 9. And Trump’s administration moves its attitude from reducing mutual tariff to search for greater access to the market, Indian negotiators burn midnight oil to ensure a “decent agreement”.
The Indian team extended their stay in Washington for the originally planned two -day visit, which ended on 27 June, in the final effort to resolve the differences, especially in agriculture, and concluded negotiations on the Provisional Trade Agreement.
According to the other US, they proposed two alternative opportunities to reduce tariffs if the White House “fully disagrees” with the conditions completed by Indian negotiators and their American counterparts.
“If India agrees with US requirements for greater access to the market in agricultural goods, dairy products and seeds, Indian goods may face only 10% of another tariff – which, although not ideal, is still much lower than other countries in the Asian region,” the other person said.
“And if India disagreed, it could face 20% of the tariff – including the current 10% basic obligation and 10% reciprocal tariff carved from 16% of the additional obligation imposed on April 2 on the US Liberation Day,” the person added. In this scenario, India would still gain 6% relief.
The recently closed personal round of interviews is considered critical, especially because the US has already completed trade agreements with China, Vietnam and the UK. Although interviews with China began in India, they proceeded faster and helped relieve bilateral tension.
Indian negotiators are looking for mutual tariffs and additional obligations, such as duties of steel, aluminum and cars – along with the assurances that no future tariffs will be stored.
“Indian negotiators tried to convince their US counterparts about domestic sensitivity involved in these sectors. To some extent, the Ustr has agreed to the position of India to fully open the agriculture industry. Now it is up to the US President to accept the last challenge.”
However, this person expressed the confidence that the agreement was on the way and probably Trump announced it on July 8 in the US.
The pact will probably be followed by an American model accepted in its agreements with Great Britain and recently with Vietnam according to business experts.
“Nothing would be better than the US that would eliminate 10% of Indian goods, but India should not open its critical industry to remove this 10%,” said Ajay Srivastava, co -founder of Global Trade Research Initiative (GTRI), Think Tank.
“India should aggressively plan to diversify its exports to other countries and minimize its dependence on the US. In the initial phase, it may impact on the knees, but in the long run this will help to build resistance and strengthen the global business position in India,” he added.
In their business agreement with the UK, the US did not remove 10% of the basic obligation to all countries. In the case of Vietnam, the overall tariff was reduced from 46% to 20%, including 10% of the basic obligation imposed within the Trump Administration’s reciprocal framework. The US-Vietnamese agreement also introduced a 40% tariff to translation through Vietnam, which aims to reduce Chinese goods directed to the US using Vietnamese facilities.
“The aim of commercial agreements is to eliminate trade barriers and set rules that support a highly standard, smooth trade that creates security for enterprises. This definition is not led by the US until 9 July. Director, CEO, CEO, CEO.
Since now, tariffs for Indian exports to the US (26%) are lower compared to Vietnam (46%), Cambodia (49%), Bangladesh (37%) and Thailand (36%) and offer India a strategic tariff advantage in sectors such as electronics, treated and toys.
In the case of China, tariffs to Chinese goods have previously increased up to 145%, but after a ceasefire in Geneva they were reduced to 30%. However, according to the new agreement, they were now restructured to a 55% area – significantly higher than the levels of customs levels currently related to Indian goods.
Questions sent to the Ministry of Indian trade, spokesman of UNG and US embassy in Nový Delhi remained unanswered until the press.
Meanwhile, Indian exporters benefit from steeper American tariffs to Chinese goods that gave Indian products a competitive advantage.
Chinese exports to the US fell by 34.5% year -on -year to $ 28.8 billion out of $ 44 billion a year earlier, according to data published by Chinese general administration of 10 June customs. However, this was compensated by the growing export of China to members of the Association of Southeast Asia countries (15% year -on -year to $ 58.4 billion in May) and the European Union (by 12% to $ 49.5 billion
According to data published by the Ministry of Commerce in India, India’s Indian imports from China increased by 21.7% to $ 10.32 billion in May from $ 8.48 billion a year earlier, driven by a higher influx of electronic goods, machines, chemicals and project equipment. Meanwhile, India’s imports from the US decreased to $ 3.63 billion from $ 3.85 billion a year ago, while exports to the country increased by 17.3% year -on -year to $ 8.8 billion, kept by higher shipments of smartphones and electronics.
According to the Ministry of Trade, the export of Indian goods to the US in the last financial year (FY25) increased by 11.6%, from $ 77.52 billion in FY24 to $ 86.51 billion in FY25. Imports from the US also increased, but by a smaller margin by 7.42%, during the fiscal year, which ended in March 31, it increased from $ 42.20 billion to $ 45.33 billion.
Meanwhile, imports from China increased by $ 11.5%, from $ 101.74 billion in FY24 to $ 113.46 billion in FY25, while exports to China decreased by $ 14.5%, from $ 16.67 billion in FY24 to 14.25 billion in FY25, which proved.
(Tagstotranslate) Commerce Ministers (T) Donald Trump (T) Indian Goods Exports (T) Imports From China (T) US Tariffs on Chinese Goods (T) US-Vietnam Deal (T) India-US Bilateral Trade Talks
