India-US trade deal: Will Donald Trump go for less than 20% tariff rate for India? Top 10 developments to track

India-US trade deal: In February this yr, US President Donald Trump and Indian Prime Minister Narendra Modi introduced the intent for a trade deal by fall this yr. Come April 2025, and Trump introduced reciprocal tariffs on quite a lot of nations, India being certainly one of them.The American President quickly suspended his tariffs for a 90-day interval giving nations time to strike a trade take care of the US. That deadline of July 9 has now been prolonged to August 1.A trade deal between India and the US has nonetheless not been finalized. Though, there are indications that an interim settlement could also be introduced quickly. Trump’s tariff battle has modified the worldwide financial panorama and progress on a trade deal between the world’s largest financial system (US) and the quickly to be fourth largest (India) is being tracked by consultants world over.Here are 10 latest developments within the India-US trade deal talks that it’s best to learn about:1) Less than 20% tariff?The United States is negotiating an interim trade settlement with India, aiming to decrease proposed tariffs to below 20%, sources with data of the discussions have instructed Bloomberg. This would give India a aggressive benefit over different nations within the area.The preliminary settlement is predicted to set up a base tariff rate decrease than 20%, in distinction to the 26% that was initially advised, the report mentioned.2) India officers in US SoonMeanwhile, a delegation from India’s commerce ministry is scheduled to journey to Washington for contemporary negotiations with the US, a authorities official instructed PTI earlier this week. The discussions might be each for an interim trade deal and the primary a part of the bilateral trade settlement. The delegation is probably going to arrive in Washington subsequent week, the report mentioned.Last month an Indian delegation, headed by chief negotiator Rajesh Agrawal, have been in Washington for discussions.Also Read | ‘Unnecessary trade barriers…’: US hits out at India’s dairy certificates necessities at WTO; raises challenge amidst trade deal talks3) Donald Trump on a tariff letter spree – however no letter for India up to nowDonald Trump has been on a tariff letter sending spree this week. While the efficient date for the reciprocal tariffs has been revised to August 1 from July 9, Trump has intimated over 20 nations of the tariff charges that might be relevant on their exports to the US.India has not been despatched any such letter until now. According to a Bloomberg report, India expects a trade deal announcement quickly as a substitute of a tariff demand letter. Any interim trade deal announcement would give each India and the US time to negotiate on the ultimate trade that’s anticipated by fall.4) Trump says take care of India quicklyEarlier this week, Trump introduced that America was nearing a trade settlement with India. “We’ve spoken to everybody. …it’s all done. I told you we’ll make some deals, but for the most part, we’re going to send a letter. We’re going to say, welcome to the United States if you’d like to participate in the greatest, most successful country ever. I mean we are doing better than ever… We’ve never had numbers like this. We’ve never had investment like this. We have more than 90… have much more than 90. But most of those are going to be sent to letter. This is exactly what I said. Now we’ve made a deal with United Kingdom. We’ve made a deal with China. We’re close to making a deal with India,” he mentioned.Also Read | India takes robust stand! Retaliatory tariffs deliberate towards US on metal and aluminium at WTO amidst trade deal talks; verify particulars5) India not engaged on deadlinesEven as the 2 nations look to seal a deal, India has made it clear that it isn’t engaged on any deadlines. Last week Commerce Minister Piyush Goyal mentioned {that a} deal could be made maintaining nationwide curiosity in thoughts.“India never makes a trade deal based on a deadline or timeline; when the deal is good, fully matured, and in the national interest, then we accept it,” he mentioned.“A free trade agreement happens only when there is mutual benefit. When the deal is made while safeguarding India’s interests, keeping in mind that national interest will always remain paramount, then India is always ready to make deals with developed countries,” he added.6) India’s trade deal pointsIndia has maintained a robust place on offering obligation concessions to the US for agricultural and dairy merchandise, given their delicate standing. India’s coverage has constantly protected its dairy sector throughout all earlier trade preparations.Additionally, India continues to uphold its ban on genetically modified meals crops, which contrasts with the United States’ agricultural practices, the place GM varieties dominate corn and soybean cultivation.Unresolved issues persist concerning duties on metal, aluminium (50 per cent) and auto (25 per cent). India can be searching for safety towards future tariff hikes by the US.Also Read | Donald Trump’s $5 million Gold Card in demand! Indian professionals from these sectors present large curiosity; what occurs to EB-5 visa?7) India Draws Red LinesIndia has additionally established clear boundaries concerning the restricted trade settlement. During ongoing discussions for the restricted trade pact between India and the United States, India has set definitive positions on important areas, particularly within the agricultural and dairy sectors.“India has drawn its red lines… now the ball is in the US court,” sources instructed PTI.8) Trump’s BRICS tariff menaceAdding to uncertainty round tariff charges is Trump’s newest menace of a further 10% tariff on BRICS nations for ‘Anti-America’ insurance policies.Trump has issued warnings to BRICS nations opposing the US. “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump shared on Truth Social earlier this week.Also Read | India-US trade deal quickly? Donald Trump says so, however India wants to be cautious of ‘escalating pressure’; ‘in future US might…’9) Only an interim trade deal for nowIf a trade deal is introduced earlier than the August 1 deadline of Trump, it’s possible solely to be a mini or interim trade deal. Reports have indicated that the interim trade deal would possible omit the contentious problems with agriculture and dairy merchandise for now.10) India-US WTO tiffMeanwhile, the United States has as soon as once more introduced up considerations on the World Trade Organisation (WTO) about India’s dairy certification necessities. The US has voiced contemporary objections on the WTO, stating that India’s dairy certification standards create pointless boundaries for dairy exports from America.The trade disputes between India and the US on the WTO lengthen past dairy issues. India has spoken of retaliatory tariffs towards the United States, in accordance with WTO protocols, following American duties on metal and aluminium that have been enacted as ‘safeguard measures’.Additionally, India has just lately signalled its plans to introduce countermeasures in response to US tariffs on automotive merchandise.However, a authorities official instructed PTI that India’s transfer to preserve its proper for imposing reciprocal duties on the US concerning auto components tariffs is a normal protocol below World Trade Organisation’s safeguard provisions. This won’t create any hindrance to the present trade settlement discussions between each nations.