India-US Trade Deal’s First Phase Nears Closure: Will It Finally Ease Tariffs?

The first phase of the proposed India-US bilateral trade agreement (BTA) is 'nearing closure' and would address the hefty 50 per cent tariffs imposed by the Trump administration on Indian goods. The Trump administration has imposed a 25 per cent reciprocal tariff and an additional 25 per cent tariff on Indian goods entering the American market over Russian oil imports. The first phase of India-US trade deal is "nearing closure," reported PTI citing an official. The deal will be announced on a mutually agreed date."We are engaged with the US on the BTA. It has two parts. One part of the negotiations will take time. The other part is a package which can address reciprocal tariffs. We are working on both aspects. The package that can address reciprocal tariffs is more

or less near closure, and we should get it soon," the official told news agency PTI. The official added that the deal is expected to address the issue of a 25 per cent penalty on India; otherwise, the agreement would have no meaning.The official added that the BTA has multiple packages or tranches, and this will be the first tranche to address the tariffs.

India To Gain From US Tariff Cuts on Agri Items

The Commerce Ministry on Monday said that India is expected to gain from the US decision to roll back reciprocal tariffs on certain agricultural products such as tea, coffee and spices. A White House Executive Order issued on November 12 excludes coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, beef and certain fertilisers from the April 2 reciprocal tariff regime. The exemptions took effect on November 13.The Commerce Ministry said that while this applies to all trading partners, it creates a level playing field for Indian exporters. India exports these goods worth over USD 1 billion annually.

US Mulling 500% Tariff?

This comes as United States President Donald Trump said that he was "okay" with Washington imposing a 500 per cent tariff on countries trading with Russia. Trump said that the Republicans are working on legislation that will impose sanctions on any country doing business with Moscow, saying that Iran may get added to the list.When asked whether it was time for Congress to pass measures aimed at pressuring Russia and President Vladimir Putin, Trump said, “I hear they're doing that, and that’s okay with me.” "They're passing legislation... the Republicans are putting in legislation... very tough sanctioning... on any country doing business with Russia. They may add Iran to that... I suggested it,” the US President told reporters.“So any country that does business with Russia will be very severely sanctioned. We may add Iran to the formula,” Trump reiterated.