Trump Tariff: America imposed 50 percent tariff on India in the month of August. Of these, 25 percent tariff was imposed as a penalty for purchasing crude oil from Russia. This tariff of US President Donald Trump also affected industries ranging from textile to leather, jewelery and seafood. However, Trump has said that he will reduce the import duty of more than 200 agricultural and farm products by November. Due to this, the expectations of Indian exports have increased again.

Which products did Trump give discount on?

• tea and coffee
• Spices like turmeric, ginger, cinnamon, cardamom, black pepper, cloves and cumin.
• Cashews and many other types of dry fruits or tree nuts.
• Processed food, all types of seasonal fruits, fruit pulp, fruit juice etc.

Talks on trade deal between the two also

Federation of Indian Export Organization (FIEO) says that the exemption in import duty can benefit Indian exports worth about $ 2.5-3 billion. This step can also be seen as a positive signal in the ongoing talks regarding trade deal between India and America. However, at present there is no exemption of any kind on prawns, basmati rice, gems and jewellery, clothes, these will continue to attract full tariff. Trump has not included many fresh and sour fruits and bananas in this list, hence the scope of exemption seems limited to many experts.

Why did Trump take this decision?

Trump took the decision to withdraw tariffs on selected goods because due to tariffs, many things had become very expensive in the American markets. Due to this, the general public there is facing problems, they have to spend more than before to buy food items. In such a situation, a need was felt to keep things affordable, due to which the idea of ​​making imports cheaper was thought of. This is also good news for Indian exporters, who will get a chance to sell their goods again in a big market like America.

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India-Rus Trade Talks: After the US imposing more tariffs on India, the talks between the two countries have started again. India and the United States have decided that a mutually beneficial trade agreement (BTA) will be completed soon. The Indian delegation went to the US under the leadership of Commerce Minister Piyush Goyal and returned after a three -day conversation. During this time, both sides discussed many important issues and agreed to continue further talks.

India has demanded removal of tariffs imposed in the form of 25 percent additional penalty from the US, as it can obstruct the agreement. 100% tariff on drugs from the US can affect India’s exports, while Indian companies have a major stake in the supply of US medicines. Nevertheless, the conversation has taken place in a positive environment and it will be carried forward in a phased manner. The goal is that by 2030 the trade between the two countries will increase from $ 191 billion to $ 500 billion. The Indian delegation also met American investors and industrialists who expressed confidence in India’s economic growth and showed a desire to increase business.

Soon India-US conversation

The Ministry of Commerce said, “Both sides shared views on the outline of the agreement. During this time, it was decided to continue the talks to reach out to the earliest profitable trade agreement. These talks have been held in the backdrop of the US administration imposing a total of 50 percent fee on India.

According to the news agency PTI, an official said that India has demanded the US to remove the tariffs imposed as this panalty, as it will be important in the way of trade agreement. The official also said that US President Donald Trump’s announcement of imposing 100% import duty on branded drugs from October 1 can affect Indian exports. The reason for this is that Indian companies have a huge stake in the supply of medicines to America.

Tariff worries on pharma

Four out of every 10 drug slips written in America in the year 2022 were completed with drugs supplied from India. Despite these deadlocks, business talks are on track. The official said that the agreement will be completed in a phased manner. The first phase of the agreement is planned to be completed by October-November this year. So far, five rounds of talks have been held. The target is to increase bilateral trade from the current $ 191 billion to $ 500 billion by 2030.

The top leadership of the two countries decided to start a conversation on the trade agreement in February 2025. The trade talks were postponed in late August after imposing 50% tariffs on India. But after the American team came to India in mid -September, this series started again.

India US Trade Deal: The time limit to implement tariff from America has now come close. On August 1, it will come into force to countries around the world, who have not made any separate deal with America. Recently, many countries including Britain-Japan have announced a trade deal with the US. There has been extensive discussion on the trade deal with India for almost a month, but no positive results have been reached yet.

In such a situation, the question is arising that where did the screw get stuck about the trade deal between the two countries? Which is the demand of America, on which there is no agreement between the two countries? Come, let’s know in detail what the situation is:

Why delay in India-US trade deal?

In fact, in an interview to CNBC, American Trade Representative Jamison Greer said that both countries still need more talks on the trade deal, as it is not yet complete. He further said that the India-US trade deal looks very close, but it is not so easy due to India’s traditional market protectionist policy. Greer says that India has shown interest in opening its market in some sectors, but now it will have to be seen how India is ready to move forward for this agreement.

On the other hand, Union Commerce Minister Piyush Goyal said that India is moving forward on a fast trade deal with the US. He further said that the US team will come to India in August and the proposed trade agreement will be next round.

Where is not being agreed?

One of the reasons for delay in India and US trade deals is the rates of high tariffs installed by the US on alyminium and copper. On one hand, India seeks relief from fifty percent tariffs on steel and aluminum and 25 percent tariffs installed in the auto sector. At the same time, India is not in favor of giving exemption in custom duty to America on dairy and agricultural products, because it will directly affect the dairy sector. Farmers may have to bear the brunt of this.

Along with this, India wants to reduce the rates of tariffs on things like banana, shrimp fish, shoes, plastic and handicrafts. At the same time, America is also pressurizing India to reduce the tariffs above Petrochemicals, Dairy Items, Dry Fruits, Trains and Industrial goods above.

In the year 2024, bilateral trade between India and America has been around $ 129.2 billion. Of these, American was exported to $ 41.8 billion in India, while India exported $ 87.4 billion to America. In such a situation, America’s trade deficit with India was $ 45.7 billion last year.

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