India, one of the world’s biggest economies and the most populous country, is preparing to face higher tariffs from the United States of America. Two Indian government sources told the Business Standard that the US will likely put a tariff of around 20-25% on some of the goods from India to the US as it fails to secure a deal with the Trump government.
Instead, India plans to resume broader trade negotiations with the US once a delegation from the country visits India in mid-August. The goal here will be to secure a more substantial and comprehensive bilateral deal with the US by September or October.
One of the Indian officials had talks with Reuters and said, “Talks are progressing well, and a delegation is expected in Delhi by mid-August.” He further added that President Donald Trump could issue a tariff letter imposing duties of 20 or 25 percent in a “worst-case scenario”. However, the official reckon that this will be a temporary measure until a deal is finalised, considering the five rounds of trade talks that have already happened between India and the US.
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Donald Trump plans to cut the trade deficit between India and the US, which was $46 billion last year, in India’s favour. Trump said on Monday that most partners who have not yet finalised a deal will face at least a 15-20% tariff, which is much higher than the 10% tariffs proposed in April.
