Minister Piyush Goyal has clarified that India does not enter into any trade agreement under time pressure and will only approve it when it aligns with national interests and is fully balanced.
Former US President Donald Trump has once again made a significant statement regarding a potential trade agreement with India. He has stated that a b trade deal between the US and India could be finalized soon and is now in its final stages. Trump also confirmed that his administration had begun sending official letters to several countries regarding import duties.
Trump said, “We have made deals with Britain, deals with China, and we are very close to making a deal with India.” He also added that countries with whom deals are not reached will have to pay heavy tariffs to send their products to America.
Additional Time for India
Just before Trump's statement, the US extended the suspension of high tariffs from July 9 to August 1, 2025. This decision has given India an additional three weeks to finalize the trade agreement. This leniency from the US administration is considered a positive sign in the trade negotiations.
It is noteworthy that the US had prepared to impose high import duties on some products from India from July 2, which has now been postponed for the time being.
Agriculture and Dairy Sectors: The Biggest Hurdle
The biggest challenge in the trade agreement between India and the US lies in the agriculture and dairy sectors. The US wants India to provide greater access to its dairy sector, but India has not opened up dairy in any Free Trade Agreement (FTA) so far.
The Indian dairy industry has long opposed the US demand because it could impact domestic producers. At the same time, the US also wants concessions on tariffs on agricultural products from India, which is currently considered difficult.
Countries to Whom the US Sent Tariff Notices
The Trump administration sent letters to dozens of countries on Monday, providing information on the tariffs to be imposed by the US on their products. The countries that received letters include:
- Bangladesh
- Bosnia and Herzegovina
- Cambodia
- Indonesia
- Japan
- Kazakhstan
- Laos
- Malaysia
- Serbia
- South Africa
- South Korea
- Thailand
- Tunisia
Regarding these countries, Trump said, “These countries are looting America. They are imposing on us duties that have never been imposed before. Some countries are levying tariffs of over 200 percent, making trade difficult.”
Tariffs and Trump's Policy
During Donald Trump's tenure, many strict steps were taken in trade policy under the 'America First' policy. Trump has often claimed that America's trade deficit has increased due to other countries, and therefore he is trying to bring balance through tariffs.
After the tariff war with China and Europe, pressure is now being put on India to change its tariff rules or be prepared for tariffs on American goods.
Why a Deal with India is Necessary for the US
India is a large and emerging consumer market for the US. Good growth has been seen in trade between the two countries in recent years. The US is one of India's major export markets, and bilateral trade between the two countries has crossed nearly $200 billion.
Trump's effort is to bring the trade balance in favor of America, for which he wants more market access and lower tariffs.
Signals of a Deal and Diplomatic Maneuvers
Trump's statements and the US extending the tariff suspension make it clear that active efforts are being made regarding a trade agreement between India and the US. However, no final signal has yet been given by India as to when this agreement will be finalized.
India wants to finalize this agreement while keeping its domestic interests in mind, especially in those sectors where the US pressure is greater.
