More Negotiations Needed for US-India Trade Deal, Says Top US Official
US Trade Representative Jamieson Greer has stated that more negotiations are required to finalize a bilateral trade agreement with India. With an August 1 deadline for reciprocal tariffs approaching, Greer noted that while discussions have been constructive, India's long-standing policy of protecting its domestic market presents a challenge. The statement suggests that a deal is not imminent, potentially impacting trade relations and markets. Indian officials have maintained that talks are progressing well and an agreement could avert the new tariffs.
Unpacked:
Key issues include India's protection of its agriculture and dairy sectors, as well as broader policies aimed at safeguarding domestic industries. The US is seeking greater market access, while India remains cautious after observing complications in recent US trade agreements with other countries.
If no agreement is reached, the US could impose higher tariffs on Indian imports, as previously announced. However, it is unclear whether the 26% tariff will automatically take effect, since India has not received a formal tariff letter from the US administration.
The US administration is pursuing reciprocal tariffs to address what it sees as unfair trade practices and trade imbalances. This approach is part of a broader strategy involving multiple trading partners, aiming to secure better terms for American exports and reduce trade deficits.
US-India goods trade totaled $129.2 billion in 2024, with the US running a $45.7 billion deficit. Both sides view an agreement as economically important, with goals to more than double bilateral trade to $500 billion by 2030. A deal could boost investment, growth, and market access for both nations.