India First vs America First: The high-stakes tug-of-war over the US-India trade deal
Sourse: in.edairynews.com
Experts believe that the tariff increases on aluminium and steel will have minimal impact on India, but the complexity of US-India trade talks remains high due to differing national priorities.
India and the United States are locked in high-stakes negotiations over a Free Trade Agreement (FTA), with both nations promoting their own 'first' policies—India First and America First.
Experts suggest that recent tariff increases on aluminium and steel are unlikely to significantly affect India.
The ongoing negotiations are complicated by unilateral tariff hikes by the US under President Donald Trump.
Recent announcements include a 25% tariff on steel and aluminium from major partners, and future hikes on other products are anticipated.
On social media, India's Commerce Minister Piyush Goyal and US Trade Representative Jamieson Greer have highlighted mutual interests in expanding market access.
However, balancing the interests of both nations in an increasingly protectionist global context is a major challenge. For India, pending tariff threats, particularly on pharmaceuticals, pose a significant concern.
Analysts propose focusing on areas of mutual benefit, such as technology transfer, as a possible path forward. A shift towards whole-category tariff negotiations instead of item-specific discussions could lead to more productive outcomes.
A strategic approach could involve India importing more US crude oil to ease trade imbalances without extensive bargaining.
Internal pressures in India complicate matters further, as demonstrated by the Swadeshi Jagaran Manch's resolution to protect Indian farmers against low agricultural import tariffs.
Until the US adjusts its rigid stance, particularly on sensitive sectors like agriculture, smooth progress in negotiations remains unlikely.
Experts suggest that recent tariff increases on aluminium and steel are unlikely to significantly affect India.
The ongoing negotiations are complicated by unilateral tariff hikes by the US under President Donald Trump.
Recent announcements include a 25% tariff on steel and aluminium from major partners, and future hikes on other products are anticipated.
On social media, India's Commerce Minister Piyush Goyal and US Trade Representative Jamieson Greer have highlighted mutual interests in expanding market access.
However, balancing the interests of both nations in an increasingly protectionist global context is a major challenge. For India, pending tariff threats, particularly on pharmaceuticals, pose a significant concern.
Analysts propose focusing on areas of mutual benefit, such as technology transfer, as a possible path forward. A shift towards whole-category tariff negotiations instead of item-specific discussions could lead to more productive outcomes.
A strategic approach could involve India importing more US crude oil to ease trade imbalances without extensive bargaining.
Internal pressures in India complicate matters further, as demonstrated by the Swadeshi Jagaran Manch's resolution to protect Indian farmers against low agricultural import tariffs.
Until the US adjusts its rigid stance, particularly on sensitive sectors like agriculture, smooth progress in negotiations remains unlikely.
