Trump Says Trade Deal With India To Mirror Indonesia Pact: 'We Are Going To Have Access Into...'
United States President Donald Trump has said that Washington’s proposed trade arrangement with India is expected to follow the framework of the recently finalised deal with Indonesia. Under that agreement, Indonesia has opened its market entirely to American goods, while its exports to the US will attract a 19 per cent duty. The pact also includes Indonesian commitments to purchase USD 15 billion worth of US energy, USD 4.5 billion in American agricultural products, and 50 Boeing aircraft.
Speaking to reporters, Trump remarked, “India is basically working along that same line. We are going to have access into India. You have to understand, we had no access to any of these countries. Our people couldn’t go in, and now we are getting access because of what we are doing with the tariffs.”
India Seeks Balanced Terms Amid Tough Talks in Washington
At present, a delegation from India’s commerce ministry is in Washington for the fifth round of talks to negotiate a bilateral trade agreement (BTA). According to a report by news agency PTI, an interim trade pact is being discussed before a full agreement is expected later this year, around September or October. The United States has reportedly issued letters to various countries detailing reciprocal tariffs that are set to take effect from August 1. India is hoping to finalise the deal ahead of this deadline to avoid retaliatory duties.
Commerce Minister Piyush Goyal, earlier this month, stated that India would not rush into any agreement. He said the country would only proceed once the deal is thoroughly negotiated and aligned with national interests, adding that India does not sign trade deals based on deadlines.
Economic Think Tank Flags Risks of Imbalanced Deal
Meanwhile, the Global Trade Research Initiative (GTRI), an economic policy think tank, cautioned that India could end up accepting a lopsided deal if it follows the Indonesian model. GTRI founder Ajay Srivastava noted that such an arrangement could potentially expose India’s domestic sectors, particularly agriculture and dairy, to duty-free US imports without receiving proportionate benefits, PTI reported.
A bad deal, especially one that removes India’s tariffs without reciprocal benefits, could be worse than no deal at all, Srivastava warned. He stressed the importance of transparent negotiations, advising India not to cave under pressure for quick or symbolic agreements that may undermine long-term economic interests.
Tariffs and Key Demands on Both Sides
India has firmly opposed US demands for tariff reductions in the dairy and agricultural sectors — areas where it has never offered duty concessions in any trade pact. New Delhi is also seeking relief from the additional 26 per cent duties imposed by the US, along with reductions on steel and aluminium (currently 50 per cent) and automotive products (25 per cent).
Trump’s announcement on April 2 regarding increased tariffs on several nations, including India, had been postponed initially for 90 days until July 9 and then extended to August 1.
On its part, the US is seeking market access for industrial goods, electric vehicles, wines, petrochemical products, dairy, apples, tree nuts, and genetically modified crops. India, meanwhile, is pushing for duty concessions for labour-intensive sectors such as textiles, garments, gems and jewellery, leather, chemicals, plastics, shrimp, oilseeds, bananas, and grapes.
India’s merchandise exports to the US grew by 21.78 per cent to USD 17.25 billion in April-May of this financial year, while imports from the US rose 25.8 per cent to USD 8.87 billion.
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