US-India Trade Deal on the Horizon

US President Donald Trump announced on Monday that Washington is "close to making a deal with India", signaling a potential breakthrough in bilateral trade negotiations. This comes as the US imposes reciprocal tariffs on over a dozen countries, sparing India from the list.

Image used for representative purposes

Global Tariff Adjustments

Trump detailed tariffs ranging from 25% to 40% on 14 countries, effective August 1, with adjustments for Cambodia and Laos. Notably, Japan and Malaysia saw a slight reduction in tariffs.

India's Strategic Moves

India has committed to purchasing American arms, energy, and other products to address the $45 billion trade deficit, while protecting its agricultural sector. Indian exporters are urging for a swift agreement to secure trade advantages.

Negotiations and Expectations

With negotiations concluding last week, both nations aim to finalize a bilateral trade pact by Fall. Trump's deadline offers a narrow window to resolve remaining differences, with the final decision resting on his approval.

International Reactions

Trump's letters to allies like Japan and South Korea, citing national security threats due to trade surpluses, have stirred international discourse. The administration's ambitious goal of "90 deals in 90 days" seems increasingly unlikely as many countries remain unresponsive.