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India-US trade deal unlikely till Trump drops 25% oil-linked tariffs: Report
Any progress on the India-US trade deal front largely hinges on Washington rolling back the Russian oil-linked additional 25 per cent duty on India, and no breakthrough is likely without it, India-based trade-focused think tank Global Trade Research Initiative (GTRI) has argued as both countries started talks on Tuesday.
"Negotiations will remain slow unless Washington signals genuine flexibility," the GTRI report argued.
It believes that there is no quick fix and India must prepare for a long haul.
India and the United States are back at the negotiating table today in New Delhi to revive trade talks after a hiatus.
The US delegation, led by Assistant USTR for South and Central Asia Brendan Lynch, is meeting Indian counterparts for the first time since President Donald Trump imposed an additional 25 per cent tariff on Indian goods from August 27 for what it said was "purchasing Russian oil" -- on top of the 25 per cent reciprocal tariffs already in place since August 7.
According to GTRI, the US looks desperate to close a trade deal with India, even as its officials almost daily use "disparaging language" against New Delhi from public platforms.
GTRI suggested that India must hold firm on agriculture and dairy, which it views not as trade issues but livelihood concerns for several hundred million farmers.
"The challenge will be how much India concedes without undermining regulatory autonomy or economic sovereignty," it added.
It reiterated that until Washington withdraws the additional 25 per cent tariff, progress is unlikely.
"India, in the meantime, should formally record its objections -- potentially through an amicus curiae brief at the US Supreme Court -- to support US businesses challenging the tariffs and keep the negotiation window open," the GTRI report concluded.
Over the past few months, India and the US have been negotiating for an interim trade deal. Still, there were reservations from the Indian side on the US demand for opening up the agricultural and dairy sectors. Agriculture and dairy are critical for India as these two sectors mainly provide livelihood opportunities to a large section of people.
India and the US initiated talks for a just, balanced, and mutually beneficial Bilateral Trade Agreement (BTA) in March this year, aiming to complete the first stage of the Agreement by October-November 2025.
Initially, US President Donald Trump announced 25 per cent tariffs on Indian goods, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs. A few days later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India's continued imports of Russian oil.
The 50 per cent tariffs came into effect on August 27.
US President Donald Trump had imposed reciprocal tariffs on dozens of countries with which the US has a trade deficit. Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that his administration will match tariffs imposed by other countries, including India, to "ensure fair trade". (ANI)
Source: HindustanTimes
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