- India-US trade deal to be finalized by fall 2025, no tariff exemptions yet.
- New US tariffs on Indian goods from April 2 may cut exports by $7.3 billion.
- India lowers some tariffs but faces impact from US curbs on Venezuelan oil.
India and the United States are working to finalize part of a bilateral trade deal before the end of the year. However, there is no indication that India will receive any tariff exemptions from the US.
Starting April 2, India will face new import tariffs from the US as part of President Donald Trump’s reciprocal tariff policy. These tariffs could significantly impact India’s exports.
The two nations have been engaged in trade talks in New Delhi this week. According to AFP, they aim to finalize the first phase of the trade deal by the fall of 2025.
India could face additional challenges due to the US decision to impose a 25% tariff on countries buying oil from Venezuela. Since India imports oil from Venezuela, this policy could affect its energy sector.
The Indian Commerce Ministry stated that both countries have agreed on steps to strengthen trade relations. Discussions included market access, reducing trade barriers, and improving supply chain integration.
However, there is no confirmation that the US will ease tariffs before Tuesday. According to India Ratings and Research, these tariffs could reduce India’s exports to the US by up to $7.3 billion next year.
India has already lowered tariffs on some products, including motorcycles and whiskey, to ease trade tensions. Reports suggest it may also cut tariffs on cars, electronics, and medical services.
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