Tariff Troubles: US-India Trade Tension in Focus Amid Deal Talks
The US administration has imposed a 25% tariff on Indian goods, which is expected to be temporary. Discussions are ongoing for a Bilateral Trade Agreement. The move aligns with the Trump administration's protectionist policies, but India is advised to remain calm to avoid derailing negotiations.
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- India
The imposition of a 25% blanket tariff by the US on Indian goods is under scrutiny as both nations engage in talks for a Bilateral Trade Agreement (BTA), according to Vimal Pruthi of EY India. He criticized the decision as 'unfortunate' but limited in its impact over the short term.
Pruthi expects that the tariffs will be rolled back once an interim trade deal is finalized. 'Negotiations are already underway, and we hope for a resolution in the coming months,' he noted, urging for patience and strategic calm from Indian authorities.
The tariffs are seen as part of President Trump's broader 'America First' agenda. However, any aggressive retaliation, such as counter tariffs from India, may compromise ongoing trade discussions, experts warn. Meanwhile, Commerce Minister Piyush Goyal assured measures to protect national interests across affected sectors.
(With inputs from agencies.)
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