Background on US Tariff Decision
US President Donald Trump announced a 26% tariff on Indian goods three months ago. This decision was delayed for 90 days, giving both countries time to negotiate a trade agreement. India has been working to reach a deal before the suspension ends on July 9.
Rahul Gandhi’s Remarks on Trade Talks
Congress chief Rahul Gandhi condemned the ongoing trade talks. He maintained that all that can be done now is regret. In his view, Prime Minister Narendra Modi will ultimately succumb to US tariffs. He called on people to remember his prophecy.
India's Trade Policy Position
Union Commerce Minister Piyush Goyal made the point on Friday. According to him, India has a strong trade policy. India never jumps into agreements to fulfill deadlines. He stated that any agreement will be helpful for both nations.
Negotiation Fields Between India and the US
India desires the US to lower tariffs in major sectors including:
- Textiles
- Gems and jewelry
- Apparel
- Plastics and chemicals
- Shrimp and oilseeds
- Grapes and bananas
In exchange, the US is requesting reduced tariffs on:
- Industrial products
- Motor vehicles (including electric cars)
- Wine and dairy items
- Petrochemical products
Agri-Sector Concerns
Indian authorities are wary of easing tariffs on farm products. Such products are politically sensitive in nature. Experts worry that easing tariffs could destabilize local farmers.
Status of Current Negotiations
A team of Indian trade representatives recently returned from the US. Reports suggest that an interim trade deal could be finalized by July 9.
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