India, US likely to announce mini trade deal today
What's the story
India and the United States are likely to announce a 'mini trade deal' later today, as per a Moneycontrol report. The agreement has been negotiated with a focus on customs, or tariff rates for goods traded between the two nations. However, discussions on agriculture and dairy sectors are still ongoing and may not be included in today's announcement.
Negotiation details
Deal to provide better market access for Indian textiles
The mini trade deal is aimed at providing better market access for Indian textiles, pharmaceuticals, and electronics in the US. On the other hand, America has been pushing India for more access to its agriculture and dairy sectors. While the customs part of the deal has been finalized, contentious issues like allowing US Genetically Modified (GM) crops into India and access to India's dairy sector have likely been kept out of this agreement.
Additional provisions
Limited tariff cuts on American cars likely
The interim trade deal could also include limited tariff cuts on American cars. This comes after US President Donald Trump had set a July 9 deadline for trade deals, after which suspended levies would be reinstated on trading partners. Trump had also said that tariff letters would be sent out to countries today, adding that there would be a mix of letters and deals made.
Tariff enforcement
US Commerce Secretary's confirmation on tariffs
US Commerce Secretary Howard Lutnick has confirmed that tariffs will now come into effect on August 1. In April, Trump had announced a base tariff rate of 10% on most countries and additional duties up to 50%, known as reciprocal tariffs. India and the US have set a timeline to complete the first phase of their bilateral trade agreement by September-October this year.