An interim trade deal between India and the US is expected to be announced on July 8. Concessions are expected in sectors like agriculture, industrial products, and automobiles.
Delhi/Washington: US President Donald Trump has said that he will not extend the 90-day pause on additional global tariffs beyond July 9, but would send letters which details trade penalties each country would face, unless they make a deal with the US. He singled out Japan and gave a hypothetical example that Tokyo would have to pay a 25% tariff on their cars. Meanwhile, an Indian delegation led by Rajesh Agarwal, Special Secretary and Chief Negotiator in the Department of Commerce, has extended their stay in Washington to strike a deal before the deadline.
Trump had suspended the additional 26% tax on Indian imports on April 2 to address the trade deficit, until July 9. However, the base tariff of 10% still exists. India is seeking a complete waiver from the additional 26% tariff. The US is demanding duty concessions on certain industrial products, automobiles, especially electric vehicles, wines, petrochemical products, dairy products, and agricultural products like apples, nuts, and genetically modified crops. India has demanded duty concessions on textiles, gems, jewelry, leather products, garments, plastics, chemicals, shrimp, oilseeds, grapes, and bananas in the proposed trade deal.
Both countries have been working towards implementing the first phase of a comprehensive bilateral trade agreement (BTA) by October this year. Trump has repeatedly hinted recently that he is preparing to implement a major trade deal with India. Last week, he said his administration was trying to remove all trade barriers.
