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India-US Tariff Deal Sparks Exporter Optimism
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India-US Tariff Deal Sparks Exporter Optimism

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James ThompsonJames Thompson
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India-US Tariff Deal Sparks Exporter Optimism

The United States and India have reached a trade deal to cut tariffs, with US President Donald Trump announcing that levies on Indian goods will fall to 18% from 25%. This move is expected to boost bilateral trade and has sparked optimism among Indian exporters. The deal comes after Indian Prime Minister Narendra Modi pledged to halt purchases of Russian oil over the war in Ukraine.

Key Highlights

  • The US and India have agreed to cut tariffs on Indian goods from 25% to 18%
  • The deal is expected to boost bilateral trade between the two countries
  • Indian Prime Minister Narendra Modi pledged to halt purchases of Russian oil over the war in Ukraine
  • The US and India currently trade goods and services worth $191 billion
  • The goal is to increase bilateral trade to $500 billion by 2030
  • India has been seeking tariff rollbacks as strong exports to the US have offset the impact of steep duties
  • The deal is a significant development in the ongoing trade negotiations between the US and India
  • India has been widening its trade push amid US tariff strain, including signing a comprehensive free trade agreement with Oman

The Deep Context

The trade deal between the US and India is a significant development in the ongoing trade negotiations between the two countries. According to India-US: Tariff slashed spark exporter optimism, the deal is expected to boost bilateral trade and has sparked optimism among Indian exporters. The US and India currently trade goods and services worth 191billion,andthegoalistoincreasethisto191 billion, and the goal is to increase this to 500 billion by 2030, as reported by India and US trade talks near conclusion, tariff cuts could boost bilateral trade to $500 billion by 2030.

India has been seeking tariff rollbacks as strong exports to the US have offset the impact of steep duties, according to India eyes tariff rollbacks as strong exports to US offset impact of steep duties: Report. The country has been widening its trade push amid US tariff strain, including signing a comprehensive free trade agreement with Oman, as reported by India, Oman seal CEPA as New Delhi widens trade push amid US tariff strain.

The deal is also significant because it comes after Indian Prime Minister Narendra Modi pledged to halt purchases of Russian oil over the war in Ukraine, as reported by India-US: Tariff slashed spark exporter optimism. This move is expected to have a positive impact on India's trade relations with the US and other countries.

As noted by Trump’s tariff tango: India is ‘ready to wait’ for deal - What gives New Delhi the space to negotiate with US, India can walk into the negotiating room with the US far more confidently than ever, thanks to a strong economy and a milder-than-expected hit to its exports. This has given New Delhi the space to negotiate with the US and secure a favorable trade deal.

Voices from the Streets

The trade deal between the US and India is expected to have a positive impact on Indian exporters and the country's economy as a whole. As reported by Indian stocks dip on US tariff fears, FPI outflows; Sensex drops 257, domestic stock markets opened in the red on Wednesday, extending selling pressure from the previous trading session amid continued concerns over new 25 per cent US tariffs on countries engaged in unfair trade practices.

However, with the new trade deal, Indian exporters are expected to benefit from reduced tariffs and increased access to the US market. As noted by India and the EU agree on "mother of all" trade deals, India has been actively pursuing trade agreements with other countries, including the EU, to diversify its trade and reduce its dependence on any one market.

Legislative & Jurisdictional Conflict

The trade deal between the US and India is a significant development in the ongoing trade negotiations between the two countries. However, there may be legislative and jurisdictional conflicts that could impact the implementation of the deal. As reported by India-US: Tariff slashed spark exporter optimism, the deal is expected to boost bilateral trade, but there may be challenges in implementing the agreement.

According to Trump’s tariff tango: India is ‘ready to wait’ for deal - What gives New Delhi the space to negotiate with US, India has been seeking tariff rollbacks as strong exports to the US have offset the impact of steep duties. However, there may be challenges in negotiating the terms of the deal, particularly with regards to the level of tariffs and the products that will be covered.

Projections & Critical Questions

The trade deal between the US and India is expected to have a positive impact on bilateral trade and the Indian economy. However, there are critical questions that need to be answered, including the impact of the deal on Indian exporters and the country's trade relations with other countries. As reported by [India and US trade talks near conclusion, tariff cuts could boost bilateral trade to 500billionby2030](https://www.msn.com/en−us/money/markets/india−and−us−trade−talks−near−conclusion−tariff−cuts−could−boost−bilateral−trade−to−500−billion−by−2030/ar−AA1QEDLw),thegoalistoincreasebilateraltradeto500 billion by 2030](https://www.msn.com/en-us/money/markets/india-and-us-trade-talks-near-conclusion-tariff-cuts-could-boost-bilateral-trade-to-500-billion-by-2030/ar-AA1QEDLw), the goal is to increase bilateral trade to 500 billion by 2030, but there may be challenges in achieving this target.

According to India eyes tariff rollbacks as strong exports to US offset impact of steep duties: Report, India has been seeking tariff rollbacks as strong exports to the US have offset the impact of steep duties. However, there may be challenges in negotiating the terms of the deal, particularly with regards to the level of tariffs and the products that will be covered.

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