Modi will bow to Trump deadline, says Rahul Gandhi
What's the story
Congress MP Rahul Gandhi has predicted that Prime Minister Narendra Modi will yield to the July 9 deadline set by United States President Donald Trump for reciprocal tariffs. The prediction comes amid a stalemate in trade negotiations between India and the US. "Piyush Goyal can beat his chest all he wants. Mark my words, Modi will meekly bow to the Trump tariff deadline," Gandhi tweeted.
Trade tensions
Trump imposed tariffs on Indian products in April
President Trump had earlier accused India of being a "tariff king" and imposed a 26% duty on Indian products as part of his April 2 "Liberation Day" reciprocal tariffs. He later suspended the tariffs for 90 days to give countries time to negotiate deals with the US. Without an interim trade deal, India faces a potential 26% tariff on its exports.
Negotiation hurdles
Sticking points in negotiations
A major sticking point in the negotiations has been India's refusal to lower tariffs on American agricultural imports like corn and soybeans. The Trump administration's demand for greater access to India's dairy sector, which employs over 80 million people, is another contentious issue. India, on its part, wants more access to US labor-intensive sectors such as textiles, gems and jewellery, leather goods, and chemicals.
Minister's position
India will not sign trade deal under pressure: Goyal
Union Minister Piyush Goyal has reiterated that India will only sign a trade deal with the US if its interests are protected. He emphasized at a business event in Delhi that India doesn't enter into trade deals under pressure or deadlines. "It should be a win-win agreement, and only when India's interests are safeguarded...if a good deal is formed, India is always ready to engage with developed countries," he said.