The ongoing trade talks between the United States and India have stalled on tariff disputes. The negotiations, which began on Thursday, aim to address concerns raised by the US, including reducing India's reliance on Russian military gear. A key aspect of these discussions is the potential reduction of tariffs on specific sectors such as agriculture and autos.
US Commerce Secretary Howard Lutnick has expressed optimism about finalizing a trade deal with India, stating that both countries have found common ground benefiting each side. However, India's resistance to US demands to open its farm and dairy markets poses a challenge to the negotiations.
The US President's tariff policies pose risks to sustained recovery, particularly for New Delhi which is currently negotiating a trade deal with Washington to avoid 26% reciprocal tariffs. India reportedly seeks exemption from this tariff before July 8 deadline, highlighting the urgency of the negotiations. Despite these challenges, both sides appear committed to reaching an agreement, with Lutnick stating that negotiations are progressing and an agreement could be reached soon.