Greetings friends!

(pixabay free image)

India and the US are negotiating for many months regarding trade deal. This deal is vital for trade between India and the US. US is the largest importer of Indian goods and services. Pharma products and IT sector services are the major exports from India to the US. US had signed trade agreements with many countries like Japan, Vietnam etc. in which the US products will enter these countries without tariffs while products of these countries will enter after the US tariffs. So, this is a win win situation for the US.

On the other hand India is not ready to let American dairy and agriculture sector products in India. This is vital for the farmers and animal rearers of India who are one of the major section of Indian workers. So, such deal is not in favor of India.

Amid the negotiation, Trump has announced that Indian products will be taxed at the rate of 25% and with additional penalty due to Russian imports in India. It will be applicable from August 1 this year.

Let us see how these tariffs will impact India. Will India yield and give every concession to the US or not.

Thanks!