U.S.-India Trade Talks: Tariffs and Tensions on the Table

U.S. and India are negotiating a tariff deal with a focus on agriculture. Trump threatens higher tariffs, while India resists reducing tariffs on key agricultural imports, highlighting farmer interests. Trade talks intensify to reach a deal benefiting both countries economically and strategically beyond just the agricultural sector.

As trade negotiations intensify, U.S. and Indian negotiators aim to finalize a significant tariff-reduction deal before President Donald Trump's set deadline. However, they face a critical impasse over U.S. dairy and agricultural imports, which remains unresolved according to sources familiar with the discussions.

This negotiation phase follows Trump's tariff-cutting agreement with Vietnam, lowering U.S. tariffs on Vietnamese goods and enabling duty-free entry of American products into Vietnam. However, Trump's 'Liberation Day' reciprocal tariffs on Indian goods pose a looming threat of increased duties.

India's commerce ministry sources emphasize their unwavering stance on protecting key agricultural tariffs, being essential to farmer interests, a strong political constituency. While potential concessions on select fruits, medical devices, and energy products are in play, both nations recognize the strategic significance of reaching an agreement which extends beyond mere economic interests.

(With inputs from agencies.)