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Stand Up To Trump On Farm Produce, MSMEs

The Morning Standard

|

June 15, 2025

S India's trade team races against time to reach an interim deal with the US on tariffs; the big challenge before Indian negotiators will be to protect the country's farmers and the lakhs of micro and small enterprises (MSMEs).

- GURBIR SINGH

Stand Up To Trump On Farm Produce, MSMEs

Trade representatives from the two sides have held several rounds of talks, including one round last Tuesday. The big hurdle to an early settlement appears to be resistance from both sides on the question of opening up India to US farm produce.

While a comprehensive India-US trade agreement seems next to impossible before Donald Trump's across-the-board 26 percent tariffs kick in on July 9, an interim deal for the near-term may stave off the US imposts for some time.

The US side is in an aggressive mood. The United States is India's largest trading partner, and the balance of trade with India is heavily tilted in the latter's favour. Of the $129 billion in Indo-US trade in 2024, US exports to India stood at $41.8 billion, while India's exports to the US was more than double at $87.4 billion.

Agriculture is vulnerable One can see the US' hard line in the negotiations. It has pushed back on India's demand that the current 10 percent tariffs not be applied to products from labour intensive industries such as leather, electronics and gems and jewelry. Reuters has quoted US officials who point out that, if the deal with Britain has not exempted US' global, baseline 10 percent tariff, it is unlikely India will get that benefit.

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