US deal: India may cut tariffs on oil, cars & defence gear

In exchange for concessions, greater market access for textile, leather goods

- RAVI DUTTA MISHRA

WITH US TRADE negotiators set to reach India on Thursday for a two-day visit, the India-US trade deal negotiations are entering their final stage and could soon see Delhi opening its market and lowering tariffs on a range of American products—from select agricultural goods to defence equipment. This is in exchange for concessions on reciprocal tariffs and improved access to the US market for India's labour-intensive sectors such as textile and leather products.

The White House said on Tuesday that the US had asked countries to make their best offers on trade negotiations by Wednesday, as the July 8 deadline for reciprocal tariffs is just five weeks away. "I can confirm the merits and the content of the letter. The United States Trade Representative (USTR) sent this letter to all of our trading partners just to give them a friendly reminder that the deadline is coming up," White House spokesperson Karoline Leavitt said.

Improving market access for US exports such as oil, armaments, soyabean, corn, whisky and automobiles could help address Washington's concerns over its goods trade deficit with India and high tariff barriers.