The White House hopes to complete a trade agreement with India within the next few weeks. This is as the US makes efforts to lock up deals with a number of nations before tariffs are reinstated. India is among the first batch of trade talks.
This pressure seeks to lower tensions with China, which is confronting some of the highest US tariffs. India has taken a backdoor approach instead, seeking to negotiate rather than ratcheting up tensions.
Tariff threats speed up talks
Donald Trump’s tariff deployment features high levels on India. India was imposed a 26% tariff. Other nations in the same tier are South Korea (26%), Taiwan (32%), and Japan (24%). Vietnam had the highest tariff of 46%. The UK got a baseline 10% tariff.
These tariffs have hastened trade negotiations. The Daily Telegraph reports that the White House plans to seal agreements with India, Japan, and South Korea first. The UK agreement will then follow, possibly within the next two or three weeks.
India’s strategic response
India has been sidestepping public criticism. It has simply continued negotiating instead. Union Commerce Minister Piyush Goyal reiterated that India had already been negotiating prior to tariffs being levied.
In an interview this month, Goyal stated, “India didn’t need tariffs because we were already negotiating a deal.” He also indicated a fall deadline for sealing the deal.
Geopolitics behind the trade push
The US aims to economically isolate China. A series of bilateral agreements with Indo-Pacific nations, including India, would support this strategy. China has hit back with steps such as stopping rare earth exports.
India, however, has kept calm. This unobtrusive, diplomatic strategy is attractive to Washington, particularly in the wake of Trump’s trade policies.
Although India had initially set a deadline for fall, the White House anticipates the deal to be concluded much earlier. The India-US trade agreement could be finished within two to three weeks. This would alleviate tariff tensions and enhance India’s position as a player in international trade.
