An exciting update has emerged in the ongoing trade talks between India and the United States. The Indian team has returned from Washington, where they represented India in discussions led by chief negotiator Rajesh Agarwal, aiming for a comprehensive trade agreement. Not only a bilateral trade agreement but also a 'Mini Deal' were discussed.
Held from July 14 to 17, the four-day meeting aimed to finalize an interim trade agreement before August 1. After completing the fifth round of talks, both countries are now focusing on crafting a 'Mini Deal' before any tariffs take effect, with the first phase of a bilateral agreement anticipated by September or October.
Experts predict the agreement, potentially just a Mini Deal, could be completed before August. If it happens, all sectors, except for dairy, agriculture, and auto, will be included. Watching which areas the US and India agree on will be intriguing.
India Stands Firm
The US desires access to India's dairy and agriculture markets and lower tariffs on these products, but India argues this isn't in its best interest. Therefore, these sectors remain off the table. India has conveyed its standpoint to the US, leaving the ball in the US's court. If a deal is to be struck, the US must adjust its position.
August 1 Tariff Deadline
President Donald Trump is actively communicating with other nations, outlining the tariffs he plans to impose, which could take effect on August 1. For India, the reciprocal tariff deadline has been extended until August 1, with Trump hopeful the trade deal with India will be completed before this date.
On the Verge of a Deal
President Trump remarked we're close to a deal, and everything is proceeding well between India and the US. An agreement on trade might soon be finalized.
It's noteworthy that the US announced a 26% tariff on India, but implementation hasn't occurred yet. Reports suggest the US might impose less than a 20% tariff or even lower than other countries. Although no official statement has been released, an update on the tariffs is expected shortly.
