The trade talks are happening, and India is one of those nations trying to soften up the Trump administration after they were hit with a 25% tariff on goods imported from the country. When two major economies are seated at the same table, their conversation frequently delves far beyond statistics and trade restrictions. It involves striking a balance between interests, identifying common ground, and overcoming obstacles that occasionally seem more significant than the nations themselves. This is precisely where the United States and India are at the moment, negotiating trade.
India is trying to negotiate with the US because of nearly $40 billion worth of exports
India is engaged in trade talks with the U.S., an Indian government source with knowledge of the discussions said on Friday, a day after Trump signed an order imposing a 25% tariff on New Delhi’s exports. Donald Trump set steep import duties on dozens of trading partners, including a 35% tariff on many goods from Canada, 50% for Brazil, 20% for Taiwan and 39% for Switzerland, according to a presidential executive order.
A U.S. delegation is expected to visit New Delhi later this month, the government source said. India’s foreign ministry said in a statement on Friday,
“We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward.”
Nearly $40 billion worth of exports from the South Asian nation – the world’s fifth-largest economy – could be impacted by Trump’s tariff salvo, according to the source. Without a deal, the rate singles out India for harsher trade conditions than its major peers, potentially damaging the economy of a strategic U.S. partner in Asia that is seen as a counterbalance to Chinese influence.
India will be in a compromising position if the USA does not soften up
The source said there is no question of compromising on India’s agriculture and dairy sectors, especially not allowing the import of dairy products due to religiously based opposition to animal feed in these products. On Wednesday, Trump also threatened additional penalties on India for its commercial dealings with Russia and membership in the BRICS group of major emerging and developing economies. There is no clarity yet on the penalty.
Trump accuses BRICS of pursuing “anti-American policies.” Differences between the U.S. and India cannot be resolved overnight to arrive at a trade deal, a senior U.S. official said on Thursday. Whatever it is going on beyond just India and America that is now involving the BRICS community, we can see that surely this trade talk will take time.
The potential results and upcoming obstacles
These discussions are taking place as pressure mounts from other world issues. Exporters are alarmed by the new tariffs the U.S. government proposed, and India is concerned about how any additional expenses would affect its vital industries, and already, India’s cities need $2.4T to meet climate goals; you can imagine the pressure. However, the fact that both parties are still meeting is encouraging, according to experts.
In the modern world, no trade agreement is made in an instant. For years to come, the decisions made by the U.S. and India will reverberate in boardrooms, industries, and even supermarkets. It serves as a reminder that trade negotiations are about more than simply politics, conversations and ideas; they are also about growth, livelihoods, and the belief that collaboration can outperform conflict. It is hoped that as negotiators go back and forth, compromise will prevail over conflict. As we wait for that, the long-awaited free trade agreement between India and the UK has finally been signed.