Mint Quick Edit | Has India clinched a deal with Trump or not?

6 months ago 10

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In general, India has little to fear in lowering import barriers. (REUTERS)

Summary

A palpable haze hung over the question after Trump sent off tariff letters to several other countries on Monday. Perhaps the suspense will be over by 1 August—if not sooner.

Given Donald Trump's U-turns and shifting statements, it's hard to say where India stands in his grand reset of trade ties. Going by a mix of signals, though, it seems India is off America's main hit list for tariffs, at least for now.

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Late on Monday, the US issued a list of 14 countries to which tariff imposition letters were being sent. Conspicuously, India was absent from it, which hinted that trade talks between Washington and New Delhi were within deal-clinching reach. Indeed, the US President said as much, indicating that the two were close to an agreement.

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Also, the White House has extended its 9 July deadline for tariff imposition to 1 August for many countries, including India. This leaves space for a mini-deal to be announced imminently. All in all, the outlook is still much too hazy, even if that's entirely in keeping with Trump's disposition and ability to exasperate interlocutors.

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In general, India has little to fear in lowering import barriers. Barring the farm sector, which is poorly placed to face global competition and has a crisis of its own, opening India's market further will serve its economy well. The same applies to the US. Trade is about mutual gain.

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