According to a Bloomberg report, this trade deal is on the verge of completion after the consent of both the countries. This deal will keep the scope to continue the negotiations for a bigger trade ahead and at the same time the initial tariff can be kept below 20%.
The trade deal between India and America (India-US Trade Deal) is being finalized. Meanwhile, a big disclosure has been made in a report. It is reported that America can keep less than 20 percent tariff on India (US Tariff on India). This is a big relief for India, because tariff up to 50 percent is going to be imposed on its neighboring countries like China and Bangladesh.
According to a Bloomberg report, this trade deal is on the verge of completion after the consent of both the countries. This deal will keep the scope to continue the negotiations for a bigger trade ahead and at the same time the initial tariff can be kept below 20%, while Trump had talked about imposing 26% tariff on India on April 2.
China will get a shock
The report further states that this deal will be very beneficial for India. US President Donald Trump has so far disclosed agreements only with Vietnam and Britain, while warning that most other partners will face extensive tariffs ranging from 15% to 20%. Vietnam is upset with the 20 percent tariff and is still insisting on reducing it. Trump has also talked about imposing higher tariffs on goods coming from China through Vietnam. Apart from this, it has been said about China that if the deal is not completed, China may have to face more tariffs.
India will get big relief
According to the report, if India finalizes this deal, then India will join the small group of countries that will get trade relief from Washington and that too at a time when Trump is pressuring other countries by increasing tariffs. The tariffs already announced for Asia range from 20% for Vietnam and the Philippines to 40% for Laos and Myanmar.
India laid out clear conditions
The Bloomberg report claims that New Delhi is demanding better terms than the terms given to Vietnam and Indian negotiators will soon go to Washington to continue the talks. India has made its final offer clear and has also told the things that it will not violate. This includes opposition to opening trade for agriculture. India has called it risky for farmers.
Deal can be done soon
Some issues still remain regarding non-tariff barriers in agriculture and pharma rules, but the interim arrangement has given time to both sides to resolve these issues. It is being said that a deal can be done between India and America before August 1. The Indian Ministry of Commerce and Industry, the White House and the US Department of Commerce did not react to this news of Bloomberg.
