Tariffs
Dual Tracks in Trade: India and US Negotiate in Washington, Square Off in Geneva
India and the US are engaged in a complex trade dynamic, negotiating a bilateral deal in Washington while simultaneously clashing at the WTO in Geneva. India seeks market access for its goods and protects agriculture, while the US pushes for dairy access. Both nations are using all avenues—negotiation and legal challenges—to assert their trade interests.
India Edges Towards US Trade Deal Amidst Tariff Pressures, GTRI Urges Caution
India nears a limited trade deal with the US, aiming to avert August 1 reciprocal tariffs. While Trump is optimistic, GTRI urges caution, calling it a "Yielding to American Tariff Retaliation Agreement." India prioritizes safeguarding its farmers and insists on a balanced pact, especially regarding GM agricultural products.
India's Demand for Zero Tariffs on Labor-Intensive Exports: A Blend of Economic Imperative and Domestic Political Strategy, Says GTRI
India is strongly pushing for zero tariffs on labor-intensive exports like garments and footwear in its FTA talks with the US, according to GTRI. This demand is a strategic blend of economic growth (boosting MSMEs, employment) and domestic politics (making the deal "sellable"). The US is reluctant to reciprocate fully, raising concerns of an imbalanced trade agreement.
Two significant threats, Trump and China's Xi, are now jeopardizing Apple's plans in India.
Apple's ambitious India manufacturing expansion faces unexpected obstacles. A potential Trump presidency threatens tariffs on Indian-made iPhones, while China's Xi Jinping is reportedly hindering the transfer of key engineers and equipment to India. These dual pressures complicate Apple's strategy to diversify its supply chain away from China.