Washington’s trade diplomacy with India hits a milestone, but the White House signals no end to talks yet. President Trump’s recent deal reveal comes with a caveat: bargaining over tariffs and other barriers presses on, even as an interim blueprint takes shape.
A post-call fact sheet from Trump-Modi discussions last Friday captures the essence: endorsement of a provisional trade structure and vows to build a fuller bilateral pact ahead.
Ongoing threads include leftover tariffs, non-tariff hurdles, tech barriers in trade, customs streamlining, facilitation efforts, and rule upgrades. The docket expands to services, FDI, IPR, labor-environment norms, govt buying, and state firm malpractices.
Sensitive matters notwithstanding, swift implementations are locked in. Trump axes 25% extra levies on Indian shipments, tied to India’s Russia oil cutoff pledge—executive action is underway.
Reciprocal US tariffs on India drop to 18%, lauding India’s trade balance fixes and security alignment. India ups the ante with more US buys and barrier removals, with rule talks ensuring prime gains for both.
Digital realm shines: India’s digital tax vanishes, bilateral norms ban e-transaction duties and discrimination.
Pact eyes economic fortification—robust chains, innovation boost, tech synergy. India’s duty history on US items (37% ag ave., 100%+ autos) frames the equity push.