India and US Engage in Trade Talks Amid Tariff Tensions - PRESS AI WORLD
PRESSAI
Economy

India and US Engage in Trade Talks Amid Tariff Tensions

share-iconPublished: Monday, September 15 share-iconUpdated: Wednesday, September 17 comment-icon2 months ago
India and US Engage in Trade Talks Amid Tariff Tensions

Credited from: TRTGLOBAL

  • India and the US resumed trade talks amid ongoing tensions from heavy tariffs.
  • US imposed a 50% tariff on Indian goods partly due to Russian oil purchases.
  • Trade discussions are viewed as 'positive and forward-looking' by officials.
  • Indian officials assert the need for Washington to revoke punitive tariffs.
  • Conciliatory tones from both nations signal a potential path toward agreement.

India and the United States have resumed trade talks in New Delhi as tensions escalate over the imposition of a 50% tariff on Indian goods by the Trump administration. This change follows accusations against India for purchasing Russian oil amidst the ongoing war in Ukraine. The US delegation, led by assistant trade representative Brendan Lynch, aims to find common ground in discussions that are crucial for easing trade barriers that have been detrimental to Indian exports, including garments and jewelry, which have already seen a drop in trade volume, according to aa and scmp.

The impetus for these talks is rooted in the recent punitive measures which include a 25% additional charge on products linked to India's oil deal with Russia. While some officials express optimism about the talks, they caution that substantial progress will depend on the US administration's willingness to revoke these tariffs, which India has termed "unfair and unjustified," according to indiatimes and indiatimes.

During the talks, Indian Commerce Secretary Rajesh Agarwal and his US counterpart discussed various aspects of a potential bilateral trade agreement. Highlighting the strategic importance of the trade dialogues, both sides recognized the need for an early conclusion of a mutually beneficial deal. Momentum was also built by US President Trump's recent conciliatory remarks, where he expressed optimism about resolving trade barriers, as confirmed by indiatimes and bbc.

Despite friendly gestures at the leadership level, the negotiations are complicated due to India’s steadfast stance on protecting its agricultural sector from increased market access, which the US has been pushing for. Analysts note that achieving a resolution on contentious topics such as dairy and agricultural tariffs will be critical, with the likelihood of significant progress hinging on the removal of the recent tariffs imposed by the US, according to channelnewsasia and bbc.

Overall, the resumption of trade discussions marks a significant step as both countries navigate the complexities of their economic relationship. The outcomes could have substantial implications on the broader context of India-US relations amid global geopolitical challenges, emphasizing the importance of constructive dialogue as noted by trtglobal and indiatimes.

SHARE THIS ARTICLE:

nav-post-picture
nav-post-picture