Tariffs: Hopes Fade for India-US Trade Deal
July 23, 25
(IDEX Online) - Hopes that India and the US could agree a trade deal before the 1 August are fading, according to multiple news sources.
Last week, US President Donald Trump said both sides were "very close" to reaching an interim agreement that would avoid the imposition of 27 per cent reciprocal tariffs on all Indian goods, including diamonds, entering the US.
But talks have reportedly stalled, over tariffs on agricultural and dairy goods.
Delegations from India and America concluded a fifth round of discussions in Washington last week, without success.
Indian negotiators are still in discussions, but will be wary after Indonesia agreed a deal that is being seen as heavily favoring the US.
India is adamant that any trade deal must be "win-win" and in its national interest, and won't rush through a lesser agreement to meet deadlines.
"For the next round of talks, US team will visit India in the second half of August," said an official from the Indian team, clearly suggesting that no deal is expected before that deadline.
India has been braced for the potentially catastrophic impact of tariffs since they were first announced on 2 April, and then put on hold, twice.
The tariffs will automatically come into force from 1 August - the deadline for an agreement - prompting sharp price increases for US consumers and jeopardizing tens of thousands of jobs in Surat.
Reciprocal tariffs were originally set to start on 9 July, but were extended for further negotiations.