From Japan, Brazil, South Korea, to Thailand-Cambodia, US President Donald Trump has announced new tariffs (Trump Tariff) across the globe, providing these countries with letters explaining the rationale behind the tariffs. However, India remains absent from the list of recipients. This is largely due to ongoing talks concerning the India-US Trade Deal. There are still pivotal issues at a standstill, and the pressing question is whether a conclusive agreement will be reached by Trump's August 1 deadline. On this matter, Central Minister Piyush Goyal (Piyush Goyal On Trade Deal) has shared a significant update.
India Stands Firm Against US Demands
Firstly, let’s explore where the India-US Trade Deal is currently stalled. The US seeks access to Indian markets for American agri-dairy products, demanding reductions in related tariffs. Meanwhile, India maintains its stance on wheat, rice, milk, and other agricultural and dairy products, outright denying these demands. Commerce Minister Piyush Goyal has clarified that an FTA should be mutually beneficial. Furthermore, Agriculture Minister Shivraj Singh Chauhan has stressed that negotiations will not occur under duress, and India's priorities will always consider the farmers’ interests first when discussing the India-US Trade Deal.
August 1 Deadline: Will the Deal Come Through?
Discussing the latest updates on the India-US Trade Deal, a team led by Commerce Department's Special Secretary Rajesh Agrawal is once again in Washington, striving to resolve issues concerning agriculture and dairy products ahead of Trump's August 1, 2025, tariff implementation deadline. Central Minister of Commerce and Industry, Piyush Goyal, has provided a crucial update. According to PTI, Goyal confirmed that talks on the proposed trade deal with America are progressing rapidly.
Goyal Proposes a Win-Win Deal for Both Nations
Piyush Goyal stated that the Indian team has arrived in Washington for the next round of trade negotiations, aiming to secure an agreement mutually advantageous to both countries. A senior official connected to the matter also indicated that the deal could be finalized before August 1, should discussions prove successful. Previously, US President Donald Trump frequently noted that a trade deal between India and the US is within reach.
Source: aajtak
If the Deal Goes Through, Potential Tariffs
Trump continues to leverage his tariff strategy globally, with announcements already made for 25 countries. Although the India-US Trade Deal faces its challenges, Trump's recent indicators have brought relief to India. Recently, when imposing a 35% tariff on Canada, he suggested that the US tariff on India could remain below 20%. He mentioned that letters might not be sent to every trade partner, and tariffs would be capped at 15-20%.
Why is India Hesitant about the Agriculture-Dairy Agreement?
Understanding India's reluctance towards meeting US demands in agriculture and dairy sectors is essential. One can gauge this from India's exclusion of these sectors in deals with the UK and Australia. The Global Trade Research Initiative (GTRI) recently reported that US exports of heavily subsidized dairy, poultry, GM soya, and rice pose a severe threat to India's agricultural economy and compromise food security.
