Donald Trump’s 25% tariff: India expects minimal affect; indicates agriculture, dairy, GM food no-go areas in trade deal talks

Experts extensively view Trump’s tariff transfer as a strain tactic to get India to conform to US phrases.

The US resolution to impose 25% tariffs may have minimal impact on India, sources informed PTI. India is evident that obligation exemptions for agricultural, dairy and genetically modified (GM) merchandise in trade agreements is a no-go space, the report mentioned, quoting sources.In the fiscal 12 months 2024-25, trade between India and the US reached $131.8 billion, which incorporates $86.5 billion in exports and $45.3 billion in imports.A good portion of Indian exports, together with pharmaceutical and digital objects, already fall beneath the US exemption class and subsequently wouldn’t incur duties, sources informed PTI.“More than half of India’s exports to the US (are expected) to remain unimpacted. Due to the Section 232 exemption of the US, only exports worth about $40 billion would be impacted with these tariffs,” they added.

India-US Trade Deal: Why Agri & Dairy Are Sticky Points

Officials highlighted issues concerning the US dairy sector’s use of animal feed, noting that India has persistently kept away from providing obligation concessions in this sector throughout all its trade agreements.“There are religious sentiments in the dairy sector. So, it is not acceptable. There will be no compromise on these segments in any of India’s trade pacts,” they mentioned, in accordance with the report.Also Read | Donald Trump tariff affect? State-run oil refiners cease Russia crude oil purchases in spot market; authorities says no directions givenBilateral trade negotiations between India and the US began in March, with 5 rounds of discussions accomplished up to now.The subsequent spherical of discussions, marking the sixth set of talks, is scheduled for August-end.

US Tariffs on India

US President Donald Trump on Wednesday introduced a 25% tariff fee for India, whereas saying that a further penalty can even be imposed for India’s buy of Russian oil and arms. The precise nature of the penalty is but unclear.According to Donald Trump administration officers, the American President is ‘frustrated’ with India’s stance in the trade talks. They additionally mentioned that India’s in depth buy of crude oil from Russia can also be some extent of ‘irritation’.Also Read | Donald Trump’s 25% tariff, ‘dead economy’ jibe: India sends clear message to the US in 5 factors – what Piyush Goyal mentionedTrump has referred to as India and Russia ‘dead economies’. “I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their Tariffs are too high, among the highest in the World. Likewise, Russia and the USA do almost no business together….,” Trump posted on social media platform Truth Social yesterday.Experts extensively view Trump’s tariff transfer as a strain tactic to get India to conform to US phrases.In response to Trump’s tariff announcement, Commerce minister Piyush Goyal informed the Parliament that India will hold its nationwide curiosity as a precedence in any trade deal. He additionally highlighted that India is the world’s quickest rising main financial system, seen as a vivid spot by economists and establishments.“We have risen from the 11th largest economy to one of the top 5 economies driven by our reforms, hard work of our farmers, MSMEs, and entrepreneurs. It is also widely expected that we will become the third largest economy in a few years,” he mentioned.Also Read | ‘India has not been a great global actor’: Donald Trump administration fires contemporary salvo after 25% tariff; says Russia oil ‘most certainly a point of irritation’