US President Donald Trump has once again taken a tough stand on the trade agreement with India. He has said that if the trade agreement with India does not finalize by the time limit of August 1, then a tariff can be imposed on Indian exports up to 25%. This statement came at a time when the two countries are having intensive interactions to finalize a broad bilateral trade agreement (BTA). Describing India as a “high -tariff country”, Trump said that India imposes heavy duty on American products, in response to which the US can also apply mutual tariffs.
Trump has repeatedly complained of trade imbalance with India in recent months. In 2023, India and the United States had a $ 117 billion trade, in which India had a trade surplus of $ 33.8 billion. According to the Trump’s policy, according to the Trump’s policy, the pharmaceuticals, gems and jewelery, and seafoods exported from India may have the most impact on areas. India has cut fees on American products, such as borbon whiskey and Harley-Davidson motorcycles, but Trump says this is not enough.
India’s Commerce Minister Piyush Goyal recently said that the two countries are making “spectacular progress”, but it has been challenging to agree on market access to sensitive areas like agriculture and dairy. Trump has indicated that he would prioritize a better agreement rather than early agreement. Experts say that if tariffs apply, India’s exports may be affected, especially because America is the largest trading partner in India. In addition, cheap imports from countries like China can damage India’s domestic industries.
India is now working on a balanced strategy in which it is trying to fulfill American demands and protect its economic priorities. This is a difficult diplomatic challenge for India amid Trump’s unexpected policies.[]
