India Calling, Japan Waiting: Trump’s Trade Tune Gets a New Chorus

1. Deal or No Deal: Trump Seeks Trade Deal with India

Negotiation Highlights:

US' former President Donald Trump has been optimistic about clinching a trade agreement with India, as there are indications that New Delhi is set to ease trade restrictions for US companies.

The planned agreement would prevent an abrupt tariff increase—scheduled to increase from 10% to 27%—when a 90-day grace period expires on July 9.

Trump claimed that India's willingness to open their markets would lead to a significantly lower tariff deal, making bilateral competition more competitive.

2. The Sticking Points: Agriculture and Auto Parts

Contestation Check:

Automobile parts import tariffs, steel, and agricultural produce particularly are where negotiations have broken down.

India drew a red line on dairy imports with the livelihoods of over 80 million smallholder farmers in mind.

Indian External Affairs Minister S. Jaishankar conceded the challenge in the talks and stated that both parties have to compromise and reach middle ground through give and take.

3. Japan on the Sidelines: Trump Raises Questions About Tokyo Discussions

Diplomatic Signals:

Though India appears to be moving towards a deal, Trump said he was not hopeful of reaching a similar deal with Japan.

He faulted Japan's trade policy, especially its refusal to buy American-produced rice, and wasn't about to move the July 9 deadline for Tokyo.

India has been accorded priority over Japan in the current trade initiative, confirmed Treasury Secretary Scott Bessent.

4. What's at Stake: Tariffs, Timing, and Trade Strategy

Policy Implications:

America is negotiating with over a dozen countries to avoid an abrupt escalation of tit-for-tat tariffs.

For India, a successful agreement would mean it is able to still access American markets without retaliatory duties, with the US wanting increased access to India's expanding consumer market. The outcome would determine Indo-Pacific trade patterns, especially as the two nations navigate broader geopolitical alignments in diplomatic forums such as the Quad.

Sources: Reuters, Times of India, Economic Times, Hindustan Times, The News International, MSN News.
 

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