US President Donald Trump, in the middle of the ongoing negotiations on the bilateral trade agreement with India, revealed on Tuesday (May 6) that India agreed to reduce its tariffs from the United States to “nothing”.
In the media interaction of the White House, along with Canadian Prime Minister Mark Carney, Trump emphasized the importance of this agreement, especially in the light of historically high tariffs of India.
Trump’s attitude towards tariffs
“India has one of the highest tariffs in the world. We will not deal with it, they have agreed to drop it, drop it for nothing. They have already agreed.
India offers zero tariffs on key American imports: message
According to the previous report in Bloomberg India, she reportedly proposed to eliminate tariffs for selected imports in the US – including steel, cars and drugs – in the ongoing bilateral business interviews with Washington. The offer with a zero tariff would apply to a mutual basis and was limited to a specific volume of imports.
Limited relief from customs law, with threshold values
According to the reported proposal, India would allow for duty to import certain industrial goods from the United States, but to a fixed quota. Any import over the agreed threshold would continue to attract standard duties.
This conditional offer is considered to be part of India’s efforts to speed up progress in the long -awaited bilateral trade agreement with the United States.
The proposal was reportedly submitted by Indian business officials who traveled to Washington at the end of April. Their visit was aimed at negotiating a quick tracking of a business agreement that seeks to significantly strengthen bilateral trade and investment.
According to a report that quoted sources familiar with discussions, both parties are now monitoring a formal agreement in the autumn this year.
Commercial Agreement on US-India: Step to Trade 500 Billion USD
The US and India were negotiating a business agreement in order to increase the bilateral trade from more than $ 190 billion by 2030. This ambitious goal was outlined during the Indian Prime Minister Narendra Modi with Trump in Washington early this year.
The aim of the bilateral trade agreement (BTA), which was the central point of discussion, is to strengthen economic ties and facilitate trading flows. Both nations are working on the completion of a temporary trade agreement before 90 -day pauses on mutual tariffs in early July.
Timeline
A 26% of the mutual tariffs, which was originally imposed by Trump 2. April, will be expired in early July. As part of this 90 -day retribution, imports from India imports were reduced to 10 percent within wider trading negotiations with countries, with the exception of China.
Both countries are working on preliminary understanding that would put the basis for the final agreement. The outcome of these discussions could significantly transform business relations between the US and India, with the potential of even greater economic cooperation in the future.
(Tagstotranslate) US-INDIA
