The US wants a strong assurance from India that it would reduce buying oil, defence purchases from Russia, and that New Delhi uses maize produced in Washington for Ethanol production, a report said. It added that the negotiations between the two countries for a successful trade deal is underway, and there are certain demands that the US really wants India to fulfill.
These include a cut in oil purchase from Russia, the biggest bone of contention and the reason behind President Donald Trump’s 50% tariffs on Indian imports, reported CNBC citing sources.
What all US wants from India
Not just these, the US is also keen on getting market access for American companies in the agriculture and dairy sectors including the milk and cheese products, the report further said.
The India-US trade negotiations had begun soon after Trump announced reciprocal tariffs on countries across the globe on April 2. However, the discussion hit a roadblock after India refused to budge on demands that would have compromised the country’s farmers.
The report further stated that a team from the US is likely to arrive in India on Monday night and trade talks could begin from Tuesday.
India-US trade deal tussle
People in the knowledge of the negotiations on both sides earlier said the discussions would lead to an interim trade deal soon, but the same did not see the light of the day. Despite multiple rounds of talks, the two countries couldn’t reach a middle ground.
Trump ultimately went ahead with his 25% initial tariffs and 25% penalty tariffs on India for buying Russian oil. Since then, PM Narendra Modi has reiterated multiple times that India will never compromise with the needs and requirements of the sectors that directly affect farmers and the economy of the country.
The update on trade talks come days after Trump softened his stance on India, reportedly following the Shanghai Cooperation Organisation (SCO) summit where India, China and Russia came together and discussed the tariff policy of the US.