Indian officials are trying to reach a trade deal with US President Donald Trump that would offer better terms than what the US has recently given to Indonesia. With the August 1 deadline approaching, New Delhi is pushing for lower tariff rates.
Trump had on Tuesday announced that the US will charge a 19% tariff on goods coming from Indonesia, instead of the 32% that was earlier considered. In return, the US will be allowed to send American goods to Indonesia without any tariffs. Trump also said that a similar deal with India is close, adding, “We’re going to have access into India.”
The US President reiterated on Wednesday that he was “very close” to finalising the India deal. “We have another one (deal) coming up, maybe with India… We’re in negotiation. When I send out a letter, that’s a deal… The best deal we can make is to send out a letter, and the letter says that you’ll pay 30%, 35%, 25%, 20%… We have some pretty good deals to announce… We’re very close to a deal with India where they open it up,” Trump added.
Indian officials, speaking anonymously with the Economic Times (because the talks are still private), revealed that they want a better deal than what Indonesia or Vietnam are getting. The US has proposed a 20% tariff on goods from Vietnam, and India is trying to negotiate something lower than that.
Right now, Indian trade negotiators are in Washington, working to finalise the details. New Delhi hopes that the US will offer it more favorable rates, which would give India an edge over other countries in the region. Officials believe that the US sees India differently from Southeast Asian countries like Vietnam, which are often used as shipping hubs for other nations. One official said this might help India get a better deal.
Trump’s Imposed Tariffs
In addition to Indonesia, Trump has revealed trade agreements with the UK and Vietnam. For the European Union, Trump levied a 30% “reciprocal” tariff from August 1. Furthermore, the MAGA leader planned to set “one tariff for all” including nations in Africa and the Caribbean which could be little over 10%. According to Trump, Jakarta has committed to buying $15 billion in U.S. energy products and $4.5 billion in agricultural goods, alongside orders for Boeing aircraft.