Much-awaited India-US trade deal nears completion as Trump makes shop in America announcement
A much-anticipated trade deal between the US and India is nearing completion, reportedly finalizing within a week. The agreement addresses key sectors like agriculture (rice, fruits, wheat), automobiles (Tesla incentives, auto parts tariffs), and industrial goods.
Kolkata: The much-awaited trade deal between the United States and India will be finalised within a week, according to reports as both sides have agreed all terms. The development comes after Donald Trump's announcement that beyond July 9, he is not planning to extend a 90-day pause on tariffs on most nations.
Trump was speaking to Fox News when he said that the US government would notify countries of the trade penalties coming into effect unless the countries have deals in place with America. An Indian team, led by Rajesh Agrawal, the chief negotiator and Special Secretary in the Department of Commerce, is in Washington to finalise the deal. According to reports, Agarwal said that India would protect its agricultural issues, specifically on rice, fruits, millet, and wheat.
He added that US automobile companies like Tesla will get incentives in the US and some parts and spares will also benefit from market access. Likewise, in the US market, auto components in India will get tariff relief.
What are the key focus areas of the trade deal?
The trade deal between the US and India emphasises certain key sectors like agriculture, industrial goods, labour-intensive products and automobiles. The US is reportedly looking for concessions in duty on some industrial goods, automobiles, petrochemical products, dairy, agricultural items and wines. On the other hand, India is reportedly for concessions in duty when it comes to labour-intensive sectors like textiles, garments, leather goods, gems and jewellery, chemicals, grapes, and bananas.
Donald Trump's big announcement
Meanwhile, US President Trump has said he does not have plans to extend a 90-day pause on tariffs on most nations beyond July 9. Also, the US government would notify countries of the trade penalties going to be implemented, unless the US have deals with them.
During an interview with Fox News Channel’s "Sunday Morning Futures", Trump said, "We’ll look at how a country treats us, are they good, are they not so good, some countries we don’t care, we’ll just send a high number out." Trump said that before the deadline, letters will be sent to those nations and they will read, "Congratulations, we’re allowing you to shop in the United States of America, you’re going to pay a 25 per cent tariff, or a 35 per cent or a 50 per cent or 10 per cent."