What’s REALLY Happening with Trump India Tariffs and the Economy | India US Trade Deal | World News

Shobhit Mittal: Even as India, US talks and negotiations continue on a multi-billion dollar bilateral trade deal, the world’s two largest democracies are clashing now at the World Trade Organization. India has now proposed slapping resi protocol tariffs on 29 American products after the US imposed tariffs on Indian steel.

The impact of Trump tariffs is being felt globally, and the World Trade Organization has now become the latest flashpoint. Washington is claiming in the WTO that there was no basis to India’s retaliatory tariffs after America imposed duties on Indian steel and aluminum continuing tariff rhetoric against India at the World Trade Organization.

The American delegation stated court. The US will not discuss section two, three. Two tariffs under agreement on safeguards as we do not view the tariffs as a safeguard measure. Uncooked. The US side seems rattled after India proposed retaliatory duties on 29 American products, including apple’s, almonds, and payers.

Claiming the new US tariffs on steel and aluminum would affect $7.6 billion in trade. Even as both the countries close in on the first tran of a bilateral trade agreement, the trade tussle in WTO is still ongoing. New DHI believes its retaliatory tariffs would rack up $1.91 billion in duties, which would offset some of the impact of new US tariffs on Indian steel and aluminum.

A government official revealed to the Decken Herald how India’s current notification to the World Trade Organization Council for Trade in goods against UST and aluminum tariffs. Only reserves. India’s right under agreement on safeguards to retaliate the source Aaron Court. It is for India to decide whether to effectuate these proposed retaliation after 30 days of the notification or later, or resolve it as part of the ongoing DETA negotiations.

Meanwhile, India’s trade negotiations with the US is entering the final leg with US trade delegation likely to arrive in India next month. The visit is aimed at quickly wrapping up the negotiations by the end of 90 day Trump tariff pause, which ends on the 9th of July. Commerce and industry minister Posh Goel is also set to hold discussions with members of Export Promotion Council.

The Indian government seeks the elimination of 26% reciprocal Trump tariffs, as well as duty free entry for labor intensive export items including Indian textiles and footwear. The US administration remarks come a week after Gole held discussions with his counterpart, Howard William Lutnick on the 19th of May, to advance the bilateral trade talks, CNBC reports that the meeting between the officials was extremely fruitful and that both sides could reach a deal.

As early as next week. Now, only a political clearance and a nod is required from the highest levels, possibly from US President, or Trump, as well as Indian Prime Minister in Modi. It’s highly unlikely for the US administration to completely exempt. India from tariffs as a 10% tax is still expected on certain Indian goods.

At the same time, there could be zero duty access for some Indian exports, especially in labor intensive sectors and goods produced by small and medium enterprises. On the other hand, leaders of major Indian companies such as Dixon Technologies, Tata, consumer Products, BlueStar, and others, observed how Barat will benefit from India’s advantages position.

This is due to expanding businesses and inquiries from their American associates and chance of expanding business activities in the lucrative American markets.

Even as Donald Trump mounts pressure for local production manufacturing in India for export still remains far more economically viable and lucrative for major players. The fact that China faces 30% US tariffs currently compared to India’s currently suspended 26%. Also presidents a positive outlook for top executives and exporters.

But what’s the holdup? The current United States law mandates approval from the US Congress before lowering tariffs below the MFN or most favored nation levels. However, the US administration can remove resi tariffs unilaterally as well. Negotiations have been taking place at a faster pace between India and the US as part of their program called Mission 500.

This aims to increase bilateral trade between the two sides to $500 billion by 2030. An agreement reached between US President Donald Trump and Indian Prime Minister Modi. During his visit to the White House in February this year as of 2024, the bilateral trade between India and the US to get a record $118.2 billion with India enjoying a $36.8 billion trade surplus.

77. In FY 24 India, exported goods worth $77.5 billion to the US while imports from America stood at $40.7 billion.

So what’s the current status of the US India trade partnership? From 2021 to 2024, the US was India’s largest trading partner, marginally ahead of China, as well as the European Union. India’s trade surplus in 2024 was $41 million. It was $35.3 billion in 20 23, 24, 27 $0.7 billion a year earlier in Coin Query 2 23.

$32.8 billion in 20 21, 22, and 22.7 billion in 20 20 21. In 2023, India’s merchandise exports to the United States touched $83.7 billion with imports. At $40.1 billion In terms of services, Indian exports to the US reached 36.3 billion with imports at 29.6 billion. Between April, 2000 and September, 2024.

India also received $67.8 billion in foreign direct investment from the us. However, in terms of total numbers, India is ranked 10th on the list of US trading partners. And New Dali would like to see that improve accounting for around 18% of total exports. The United States is currently India’s largest export market, contributing approximately 2.2% to India’s GDP in FY 24.

However. India, US ties are not just defined by trade. The world’s two largest democracies are strategic partners and face common geopolitical challenges as well as interests. Yet the ongoing dispute and the World Trade Organization needs to be sorted. The United States also needs to speed up fighter jet engine deliveries for India’s stages, fighter jet, as well as Apache helicopter deliveries, all of which have been delayed multiple times.

Such roadblocks have resulted in Indians asking the serious question. Can India cross America as a long-term geopolitical ally?

Source: https://youtu.be/fYZXkoGv06w