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India asks US to sort out tariffs before trade deal
India wants the US to sort out its 25% extra tariffs before both countries seal a new trade agreement.
Talks have been ongoing since March, aiming for $500 billion in trade by 2030.
Even though the latest negotiation round got postponed, officials are still meeting online to keep things moving.
What's the hold up?
US tariffs could hit up to 1.5% of India's GDP, so India is looking at ways to boost local demand and tweak GST rules if needed.
The US also wants lower Indian tariffs on some farm products, but India isn't budging—protecting farmers is a priority.
The first phase of the deal could wrap up by fall 2025, and right now, the US is still India's top trading partner with $12.56 billion traded between April and July this year.