Donald Trump|15th July: Says India is moving in the same direction as Indonesia when it comes to opening up trade access for the United States, “We are going to have access to India.” Trump tells US will have access to India, on similar lines as Indonesia-US trade deal.
US president Trump stated the upcoming India-US trade agreement will follow the same frameworks as the recent Indonesia deal. US exports are subject to zero percent tariffs in return for US access to India. Additionally, India’s exports to the US will be subject to a flat tariff of about 19 percent, similar to what Indonesia has done.
According to Trump, ‘India basically is working along the same line’.
Risk to India: –
Considering domestic rural lives, opening agricultural and dairy to U.S. imports is a politically delicate topic. An unbalanced agreement could hurt domestic industries more than boost the economy, according to the Global Trade Research Initiative.
What is in Play for US?
It’s part of a broader tariff-leverage strategy—flattening duties on some while threatening higher tariffs (20–50%) on others if deals aren’t concluded by August 1
Trump is advocating for an expedient framework akin to that of Indonesia: India imposes a consistent 19% tariff on Indian goods while the United States obtains access to markets. India’s negotiators are committed to customizing conditions, particularly in relation to labor-intensive exports, dairy products, and agriculture.