Negotiations between India and the US about tariffs are going to start from 17 May. Meanwhile, the situation has changed considerably. Sources say that India’s focus in the conversation will be on the interest of the country. The government’s stand on some sensitive items related to agriculture and dairy will be strict. However, US President Donald Trump said on 15 May that India agreed to reduce tariffs on all American products.
India ready for zero tariff on Industrial Goods
India has offered zero-to-zero tariff on Industrial Goods. Negotiations are going on in both countries regarding other products. India wants to keep stance strict on sensitive products of farm and dairy sector. A senior government official said, “Whenever there is a deal about business, you want to protect your sensitive sector. The other side tries to protect its sensitive sector. It is negotiated. In such a situation we have to balance. But we would like to protect our sensitive sectors.”
US President Donald Trump’s statement away from truth
Trump said on May 15 that the Indian government has offered us such a deal in which he does not want to actually put any tariff on us. His statement came at a time when Trump is being criticized for a statement on ceasefire between India and Pakistan. On May 10, before the official announcement of the ceasefire from India, Trump posted it on a social media platform. He also claimed that he persuaded both countries to ceasefire in the name of trade. India has rejected this claim.
India reached WTO with tariffs on steel and aluminum
India took a case of tariffs on the US steel and aluminum in WTO on 13 May. India said that he too would impose tariffs in response. This is different from the earlier stance of India, in which India had expressed a desire to resolve the matter with a trade agreement instead of imposing counter tariffs. Significantly, the US has announced 25 % tariffs on steel and aluminum.
There is a lot of care in the deal regarding India tariff
A source associated with this issue said, “A month ago, some sides had told about the option of taking the matter to WTO. He believed that India should take retaliation. But, then the government did not have the intention that did not progress about it. But, now India is ready to impose counter tariffs.” India’s representatives will discuss this in a conversation with American representatives. The way to go to WTO about this seems practical. India is running blowing in this matter, while Trump has indicated that the deal between India and the US has become almost done with the bilateral trade agreement (BTA).
Right now the conversation between the two sides remains
However, India wants to be cautious in this matter. The government’s senior official said, “We don’t think you can suddenly finalize the deal. We will reach a conclusion after the conversation. After that the final decision will be taken.” He also said that the two sides are trying for the deal before the recipe is implemented in July. Many things have been discussed and many have to be interacted.
