India, US to finalize interim trade deal in days: Reports
What's the story
India is reportedly set to finalize an interim trade deal with the United States within two to three days. The agreement aims to prevent potential tariffs threatened by US President Donald Trump. This interim deal would be one of the first with a major trading partner for the US. It would serve as a preliminary step toward a full bilateral agreement between Washington and New Delhi, the Financial Times reported.
Negotiation details
India seeks safeguards for labor-intensive sectors
Sources told Fortune India that India is unlikely to give full market access in agriculture and dairy sectors to US firms. The country has also sought safeguards for its labor-intensive sectors like garments, footwear, and leather during the negotiations. "We are hopeful..But there would be no compromise on the interests of Indian farmers," people privy to the development told ET. "India's stance in these areas is very clear," said another person. "There are red lines that will not be crossed."
Negotiators
What negotiators said
"The talks are at a critical juncture," a third individual told ET, adding that the deal might be divided into phases, with specific details coming later. NDTV reported that New Delhi won't sign a deal that doesn't include both sectoral access and reciprocal tariffs on its exports. Negotiators say that the goal of doubling bilateral trade to $500 billion by 2030 is not possible without wider tariff cuts, especially on goods that create a lot of jobs.
Deal
Trump slapped a 26% reciprocal duty on India
On April 2, Trump slapped a 26% reciprocal duty on items imported from India as part of the administration's trade tariffs on numerous countries. The tariffs were halted for 90 days, until July 9. Earlier this week, Trump stated that he was not planning to extend a 90-day pause on tariffs on most nations beyond July 9. "We'll look at how a country treats us...some countries we don't care, we'll just send a high number out," Trump told Fox News.
Trump
'Very big deal' with India: Trump
Trump has already announced a deal with the United Kingdom, China on accelerating shipments of rare earth minerals to the US, and the latest, Vietnam. He had also hinted at a "very big deal" with India. "We have one coming up—maybe with India. A very big one, where we are going to open up India," Trump said on Friday. Again, on Tuesday, Trump hinted at a possible deal with India, saying it'll be "different kind" with "much less tariffs."