The tariff dispute between India and the United States may soon come to an end. US Ambassador Sergio Gore has indicated that a deal could be signed in a few weeks. The trade between the two countries was $129.2 billion in 2024, with India having a higher export volume. Pharmaceuticals, gems and jewelry, and textiles are major exports.
Tariff Dispute: The ongoing tariff dispute between India and the United States is now moving towards a resolution. Sergio Gore, the incoming US Ambassador to India, stated that a deal could be signed between the two countries in the coming weeks. Currently, the US has imposed a 50% tariff on India, but negotiations are progressing. Gore clarified that the friendly relations between the two countries are deep and trade differences will be resolved soon. In the year 2024, trade between the two countries amounted to $129.2 billion, with India exporting products such as generic medicines, gems and jewelry, textiles, and petrochemicals to the US on a large scale.
US Ambassador Gives Positive Signals
During a confirmation hearing for his appointment, Sergio Gore stated that the friendship between India and the United States is extremely b. He mentioned that discussions are ongoing regarding the tariff issue, and both countries are very close to an agreement. Gore clearly indicated that a significant decision could be announced in the coming weeks.
Discussions on Russian Oil Also Held
Sergio Gore also commented on the procurement of Russian oil. He stated that the Trump administration's priority is for India to reduce its dependence on Russian oil. However, he also acknowledged that the dispute over this issue will not prolong. Gore said that President Trump may criticize India's policies, but Prime Minister Narendra Modi is his good friend. He further added that the relationship between India and the United States is much ber and more reliable than that with China.
Where the Agreement is Stuck
Negotiations on the tariff agreement between India and the United States have been ongoing for quite some time. The issue began when the US announced "reciprocal tariffs." Following this, the US imposed tariffs of up to 50% on India. The US wants India to open its markets for American companies in the dairy and agricultural sectors. However, Prime Minister Narendra Modi had clearly stated that there would be no compromise on the interests of farmers. The negotiations are stalled on this particular issue.
What India Supplies to the US
- India exports a large quantity of pharmaceuticals, gems and jewelry, petrochemicals, textiles, and automotive sector products to the US.
- India supplies approximately ₹68,520 crore worth of medicines to the US annually. About 47% of the generic drugs sold in the US market originate from India.
- In terms of gems and jewelry, India is among the leading countries globally. Approximately $33 billion worth of gems and jewelry are exported annually. Out of this, about 30%, or $9.9 billion, is exported solely to the US.
- In 2024, India sold about $9.6 billion worth of clothing and textiles to the US. This constitutes 28% of India's total textile exports.
- Additionally, petrochemicals, textiles, and automotive sector products are also exported from India to the US in large quantities.
Strong Trade Relationship Between India and the US
The trade relationship between India and the United States has been robust for a long time. The people-to-people connections between the two countries also strengthen these ties. According to US government data, the total trade between India and the US in 2024 stood at $129.2 billion. During this period, the US exported $41.8 billion to India, while India exported $87.4 billion to the US.
