US trade deals with Japan, Indonesia hold lessons for India

As India continues to negotiate a potential trade agreement with the United States, Washington's latest deals with Japan and Indonesia offer both valuable lessons and cautionary signals.

- Dipak Mondal

On Tuesday, the US announced separate trade pacts with the two Asian economies. Under the agreement with Japan, the US will impose a 15% tariff on Japanese imports, lower than the initially proposed 25%. In return, Japan has agreed to grant tariff-free access to US farm products and commit a significant investment of $550 billion in the US economy.

Indonesia has secured a reduction in US tariffs to 19% from a proposed 40%. In exchange, Jakarta will eliminate tariffs on 99% of US exports, effectively opening its market to a wide range of American industrial, tech, and agricultural goods.