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Indo-US Trade Agreement: US President Donald Trump and Japanese Prime Minister Shigeru Ishiba have announced a historic trade agreement that will lead to 15% tariffs on goods imported from Japan to America. This tariff is less than the already fixed 25% tariff, indicating an agreement between the two countries.
In addition, the US has also announced trade agreements with other Asian countries including Indonesia, under which Indonesia has been given zero tariffs in the US market, while imports from Indonesia will cost 19% tariffs.
Possibility of trade agreement between India and America
Negotiations on the trade agreement between India and the US are also moving fast. President Trump said that India is ready to reduce market barriers for American companies, which could soon be an agreement. Under this agreement, 26% of tariffs on India can be reduced to less than 20%.
Indian Foreign Minister Subrahmanyam Jaishankar said during an event in New York, “We are in the middle of a complex business talks.” Both of us will have to adopt a policy of mutuality. India has maintained its position in agriculture and dairy regions, while maize and some fruits are likely to accept American demand for market access.
What is beneficial for India?
In the last financial year 2024-25, bilateral trade between India and the United States was $ 131.84 billion, with America the largest trade partner in India. The US holds 18% in India’s total exports, 6.22% in imports and 10.73% in total trade.
According to a SBI report, the impact of tariffs on India’s exports would be negligible as India’s IT, Financial and Professional Service sector exported a record of $ 387.5 billion in 2024–25. India can increase its stake in chemical exports by taking advantage of the high tariffs imposed on China and Singapore.
What next?
The trade talks between India and the US are likely to be completed before the August 1, 2025 deadline. Indian Commerce Minister Piyush Goyal said, this agreement will be beneficial for both countries. The two countries aim to reach bilateral trade to $ 500 billion by 2030. This trade agreement can promote areas of India’s textile, gems and jewelery, electric vehicles and petrochemical products.