US-India Trade Negotiations
The article discusses the potential shift in US trade policy under President Donald Trump, with a focus on reciprocal tariffs and ongoing trade negotiations between the US and India.
US Stance on Reciprocal Tariffs
- President Trump hinted at possible concessions on reciprocal tariffs, which could benefit multiple countries, including India.
- This potential softening of stance comes amidst uncertainty around White House's trade policies.
Impact on India
- India anticipates US demands for increased market access in the automobile, whisky, and agricultural sectors, including GM products.
- Discussions will address removing non-tariff barriers and increasing US visas for Indian professionals.
Digital Trade Concerns
- US expected to seek greater access to data, challenging India's strict data localisation norms.
- Data localisation has been a contentious issue, with India mandating domestic storage of payment data since April 2018.
Trade Deal Prospects
- India open to cutting tariffs on over half of US imports worth $23 billion.
- Reciprocal tariffs could impact 87% of India's exports to the US, valued at $66 billion.
- Potential tariff reductions on 55% of US goods imported by India, currently subject to tariffs ranging from 5% to 30%.
US Tariff Implementation Strategies
- Trump considering a two-step approach for tariff regime, potentially using emergency powers for immediate duties.
- Legal avenues under review include Section 301 investigations and the International Emergency Economic Powers Act.
Overall, the negotiations between the US and India will address both market access and regulatory issues, with significant implications for bilateral trade relations.
