US announces fresh tariffs on multiple nations as President Trump says Washington is close to sealing a trade deal with India.Photo/X.
US on Monday announced fresh tariffs on several countries, however, President Donald Trump on Tuesday said that Washington is close to reaching a trade agreement with India.
“We’ve made a deal with the United Kingdom, we’ve made a deal with China, we’ve made a deal—we’re close to making a deal with India… Others we met with, we don’t think we’re going to be able to make a deal. So we just send them a letter,” Trump said during remarks at the White House.
The US President’s comments came after the administration unveiled the first round of letters threatening higher tariffs on key trading partners, including Bangladesh, Thailand, South Korea, and Japan. The new tariffs are set to come into effect on August 1.
“We’re sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit depending if they have a cause, we’re not going to be unfair about it,” Trump added.
Negotiators from both the US and India are working to finalise a tariff-reducing deal, however, there are significant disagreements from India, especially over US demand related to India’s dairy and agriculture sectors.
US is reportedly pushing India to open its market to genetically modified (GM) crops which India has resisted over concerns for its farmers’ livelihoods and environmental risks.
Agriculture contributes only 16 percent to India’s trillion economy but support nearly half of the country’s 1.4 billion population. The possibility of cheaper agricultural imports from the US could push down domestic price which could be politically consequential for India.
To protect its rural and agricultural economy, India has historically kept agriculture out of Free Trade Agreements (FTAs).
Alongside agricultur, US is reportedly also asking for greater access to India’s dairy industry. However, India is pushing against the move and both sectors are likely to be excluded from the proposed mini trade deal.
India is also working to get meaningful tariff concessions on its key labour-intensive exports such as footwear, garments, and leather, industries.
India has recently has made it clear that it will not agree to any trade deal that does not address both market access for its exports and reciprocal tariff reductions.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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