US President Donald Trump has so far issued tariff letters against about 20 countries. In which countries like Japan, Korea etc. are prominent. On which a tariff of 25 percent has been imposed. At the same time, tariffs have also been announced on metals. On the other hand, no tariff letter has been issued against India so far. Nor has any new announcement has been made. But from New Delhi to Washington, voice is definitely being heard, that is that a tariff of 20 percent can be imposed on goods coming from India. The deal between the two countries has been completely fixed. By the way, no one is ready to speak in this matter. Let us also tell you what is the whole matter?
Tariff up to 20 percent
People familiar with the case said that the US is working on an interim trade agreement with India, making its proposed tariffs up to 20 percent. Due to which India will come into a favorable position compared to South Asian countries. India has no hope of getting a tariff demand letter contrary to many other countries this week. It is expected that the trade system will be announced through a statement. Sources requested not to reveal the identity, saying that this interim agreement will help make the future talks quite easy, which will give New Delhi an opportunity to resolve the pending issues before a comprehensive agreement.
No deadline for interim agreement
Sources said that in the statement, the baseline tariff can be determined up to 20 percent as compared to 26 percent. The language of this proposal will be such that both sides will allow the two parties to continue negotiating at the rate as part of the final agreement. The time of interim agreement is not clear. If it is finalized, India will be included in the small list of trading partners who have entered into agreements with the Trump administration. US President Donald Trump has shocked dozens of business partners this week when he announced tariff rates of up to 50 per cent in some cases before the August 1 deadline.
India wants a better deal than Vietnam
The Ministry of Commerce and Industry of India did not respond to the email sent for further information. The White House and the Department of Commerce also did not immediately respond to the remarks requests. New Delhi is trying to compromise on more favorable terms than the agreement signed by Trump with Vietnam, which includes 20 per cent import duty. However, Vietnam was surprised at this rate and is still trying to reduce it. Britain is the only other country with which Trump has announced a trade agreement.
Trump’s statements about India
On Thursday, Trump told NBC News that he was considering levying a comprehensive fee of 15 per cent to 20 per cent on most of the trading partners who have not yet been informed about their rates. The current global basic minimum fee for almost all American trading partners is 10 per cent. So far, the fees rates declared for Asian countries range from 20 percent to Laos for Vietnam and Philippines and 40 percent for Myanmar.
India was one of the early countries to contact the White House for trade talks this year, but signs of tension have appeared in recent weeks. Although Trump had said at the beginning of this week that an agreement is going to be held with India, he has also threatened to impose additional fees on India’s participation in the BRICS group. A team of Indian negotiators is soon coming to Washington to pursue the talks.
Both countries adamant on these two issues
Bloomberg News had earlier stated that India had already put its best offer before the Trump administration and made it clear that it will not cross any limit in finalizing any agreement. Both sides are adamant on some major issues, including Washington’s demand that India open its market for genetically modified crops. Because a request that New Delhi has rejected by citing the risk for its farmers. People familiar with the matter said that no consensus has yet been reached on controversial issues including non-tariff obstacles in agriculture between the two countries and regulatory processes in the pharmaceutical industry.