India seeks trade-deal with US to boost textile, leather exports
What's the story
India is pushing for a bilateral trade agreement (BTA) with the US that would give preferential treatment to labor-intensive goods like textiles and leather. A top source told BusinessLine that the deal should provide India with market access in these sectors and ensure sustained preference over other countries. The aim is to help Indian products compete better in the US market.
Negotiation update
Negotiators returned empty-handed
After a week-long negotiation in Washington DC, India's team of negotiators returned empty-handed. They were hoping to finalize an interim trade deal with the US before July 9, when a 90-day grace period on reciprocal tariffs imposed by the US would end. The first source said, "The ball is now in the US' court as India has already offered to bring down tariffs in a number of sectors for American goods."
Tariff concerns
Trump to send letters to trade partners
US President Donald Trump has announced plans to send letters to trade partners with whom no deals have been struck, detailing the tariffs that would be imposed on their products. The specifics of these letters and how the tariffs would be calculated remain unclear. On August 2, Trump announced reciprocal tariffs for most trade partners with which the US had a trade deficit.
Tariff suspension
Tariff rate fixed at 26%
The tariff rate was fixed at 26% for India but was suspended for a 90-day period until July 9, except for a base tariff of 10%, to give countries time to negotiate trade deals with the US. Trump had said he had already signed 12 letters that would be sent out on Monday and all other countries would receive letters by July 9.