India-US Trade Deal / Donald Trump's latest statement on trade deal with India, know full details

India-US Trade Deal: US President Donald Trump recently claimed that a trade deal with India is in the final stages. In a statement on Monday, Trump said, "We have made trade agreements with Britain and China, and now we are very close to making an agreement with India." He also informed that his administration has started sending letters to many countries informing them about the tariffs imposed on imported products. Trump clarified, "We have sent letters to the countries with which we are unable to reach an agreement that if they want to send their goods to America, they will have to pay the tariff."

Extension in high tariff suspension

Trump's statement comes at a time when the US administration has extended the suspension of high tariffs imposed from July 2 from July 9 to August 1. This decision has given India an additional three weeks to finalize the trade deal with the US. India's Commerce and Industry Minister Piyush Goyal had said last week that India would not make any agreement under the pressure of deadlines. He stressed that India will accept the agreement only when it is fully finalised and in the national interest.

Agriculture and dairy sector: Challenge for India

Giving tariff concessions in the agriculture and dairy sector remains a complex issue for India. India has not yet fully opened its dairy sector in any free trade agreement. This sector is sensitive for India, and agreeing on it with the US can be challenging. The Trump administration sent letters to various countries informing them of the tariffs applicable on their imported goods. This includes countries like Bangladesh, Indonesia, Japan, South Korea, Thailand. Trump accused these countries of "looting" the US, saying that some countries are imposing tariffs up to 200 percent, which is making trade "impossible".

Global trade and tariff strategy

Trump also said in his statement that his policy aims to protect American interests. He claimed that many countries are taking unfair advantage in trade with the US. Trump presented the process of sending the letter as a warning, in which it has been made clear to the countries that they will have to pay tariffs to enter the US market. This policy can also affect countries like India, which are trying to maintain a balance in trade with the US.

Way forward

The trade agreement between India and the US is almost in the final stage, but some important issues are still to be agreed upon. In particular, India's vigilance in the agriculture and dairy sector can affect the direction of this agreement. It is clear from Piyush Goyal's statement that India will give priority to national interests. On the other hand, the tariff policy of the Trump administration is creating a new pressure in global trade. The talks between India and the US in the next few weeks will decide the future of this agreement.