India-US Trade Deal Nears Final Stage Amid Tariff and Visa Challenges

India-US Trade Deal Latest News

• After prolonged delays, the India-US trade deal is back on track. A high-level Indian delegation has reached Washington to resume talks, with signs that negotiations are entering the final stage.

India-US Trade Talks Resume With Renewed Push

• Commerce Minister Piyush Goyal is leading India’s trade team in Washington, where talks on the long-delayed India-US trade deal appear to be regaining momentum. 
• Earlier attempts had collapsed after the White House demanded more concessions despite a draft agreement being cleared by both sides. 
• This time, India is likely to offer additional sweeteners — including major defence purchases and nuclear cooperation — to frame the deal within the broader strategic partnership. 
• The negotiations follow recent meetings between US and Indian trade officials and come after tensions escalated when President Trump doubled tariffs on Indian goods, citing India’s purchase of Russian crude.

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India’s Messaging in Trade Negotiations

• Firm Stand Against Tariff Pressure
  • Indian officials believe Washington now recognises that India will not bow to tariff threats, unlike South Korea, Japan, or the EU. 
  • New Delhi has consistently flagged its red lines and indicated it would not compromise, even if that meant no trade deal.
• Key Expectations
  • India expects reciprocal and punitive tariffs to be removed in a single step and replaced with one consolidated tariff rate. 
  • The earlier draft deal is likely to serve as the basis for fresh talks, with some additional concessions included.
• H-1B Visa Issue as Leverage
  • The Trump administration’s recent H-1B visa fee decision, which primarily impacts India, is viewed as a negotiating tool. 
  • Trade experts suggest its timing signals additional leverage against India, much like secondary tariffs over Russian oil imports.
• The Challenge Ahead
  • India’s main challenge will be balancing the removal of tariff barriers on goods while addressing the H-1B issue, without letting non-tariff concerns derail the core trade deal.

Mixed Signals in India-US Trade Talks

• Optimism Over Tariff Removal
  • Chief Economic Adviser V Anantha Nageswaran stated that the additional 25% US tariffs imposed on India over Russian oil imports would not continue beyond November 30, indicating positive backchannel progress.
• Leaders Express Confidence
  • Trump recently said he was “certain” trade negotiations with India would succeed, while PM Modi responded by calling the two countries “natural partners” committed to a brighter, more prosperous future.
• Renewed Pressure on Russian Oil Purchases
  • Soon after, the US urged G7 nations to intensify pressure on countries buying Russian oil, highlighting India and China as the largest importers. The move complicates trade discussions.
• India’s Firm Position
  • India has defended its Russian oil imports, citing economic and commercial needs. 
  • Finance Minister Sitharaman reiterated this stance, while PM Modi affirmed India will not compromise farmers’, fisherfolk’s, and cattle keepers’ well-being.

Source: IE