Bilal Bazaz CNI

Srinagar July 8: US President Donald Trump on Tuesday said that the United States is close to finalising a trade deal with India, even as Washington announced new tariffs on 14 countries. Talks between the two sides are ongoing, but key differences especially on agriculture and dairy are slowing down the agreement.

Speaking from the White House, Trump said, “We’ve made deals with the United Kingdom and China. We’re close to making a deal with India. Some countries we won’t be able to strike a deal with, so we’re sending them letters about new tariffs.”

The US has begun sending official notices to countries like Bangladesh, Thailand, South Korea, and Japan, warning them of increased tariffs starting August 1. Trump said the US will adjust the tariff demands only if there’s a valid reason. “We’re not going to be unfair,” he added.

Meanwhile, the US and India are trying to settle what’s being called a “mini trade deal.” However, talks have hit a roadblock over Washington’s demand that India open its markets to genetically modified crops and American dairy products. India has long resisted these demands, citing threats to food safety and farmers’ livelihoods.

Agriculture is a sensitive issue for India. While it only makes up 16% of the country’s economy, it supports nearly half the population. Allowing cheaper imports from the US could hurt local prices and trigger backlash against the Indian government.

India has a history of keeping agriculture out of its free trade agreements. Officials worry that if the US gets market access, other countries will demand the same, putting more pressure on local farmers.

At the same time, India wants the US to reduce tariffs on goods like footwear, garments, and leather products key exports that generate large numbers of jobs. Indian negotiators say they won’t agree to a deal unless there are clear benefits for these labor-intensive industries. Without significant progress on this front, India believes the goal of doubling US-India trade to $500 billion by 2030 is unlikely to be met.

The outcome of the talks remains uncertain, but both sides appear to be pushing forward hoping to strike a balance between political concerns, economic goals, and trade fairness.

Source : News Agencies