The United States threatened Delhi by the introduction of duties reaching up to 26 percent. – This is one of the highest rates imposed on a large economy. President Trump appointed on July 9 as a final date for the conclusion of new contracts. A spokeswoman for the White House, Karoline Leavitt, announced that information about the contract with India can be announced soon.
On Tuesday or Wednesday, the head of Indian diplomacy S. Jaishankar is to meet in Washington with the American Secretary of State Marek Rubio during the talks of the Quad group (USA, India, Australia, Japan).
India wants to protect their agriculture
The planned agreement is to protect Indian agricultural products – such as wheat or dairy products – against new customs. In return, India is to increase the import of American gas to reduce the trade surplus (currently $ 41.2 billion). The parties also agreed to reduce customs duties on thousands of other goods.
“FT” reminds that India had successfully defended their dairy market before – including in conversations with the EU. This sector employs over 80 million people, mainly small farmers. The Indian authorities also emphasize religious sensitivity related to products from cows fed with animal feeds, but they agreed to import some American agricultural goods – e.g. nuts and fruits.
This potential agreement could be one of the first in the new policy of retaliation, announced by Trump on April 2.
India. Modi and active trade strategy
As the Financial Times notes, The government of Prime Minister Modi adopted a more active trade strategy this year – he concluded a contract with Great Britain in May, and by the end of 2025 it plans to sign an agreement with the European Union.
The US and India also strengthens cooperation in the field of security, in the face of the growing importance of China. Trump also pressed Delhi to increase the shopping of American weapons to reduce the deficit in trade between countries.
