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regular-article-logo Monday, 14 July 2025

Experts warn India against hasty US trade deal amid tariff pressure

Economic think tank GTRI (Global Trade Research Initiative) says India must recognise that it is not alone in facing US pressure

PTI Published 13.07.25, 08:26 PM
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India should avoid rushing into a trade deal with the US that compromises core sectors like agriculture, experts on Sunday said, cautioning that Washington is not sparing even its key partners like the EU.

The US has shot off letters to 24 countries and the European Union (EU) imposing tariffs that are as high as 50 per cent on Brazil. On its key trading partners like the EU and Mexico, 30 per cent duties have been proposed from August 1.

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Economic think tank GTRI (Global Trade Research Initiative) said India must recognise that it is not alone in facing US pressure.

The US is currently negotiating with over 20 countries and seeking concessions from more than 90.

"Yet most are resisting because they see these MASALA (Mutually Agreed Settlements Achieved through Leveraged Arm-twisting) deals for what they are politically driven, transactional demands offering no lasting trade certainty," GTRI Founder Ajay Srivastava said.

He added that both the EU and Mexico are major trade partners of the US, and Washington can impose tariffs on them to pressure them into quick deals, India cannot expect a balanced deal.

Another trade expert said India should tread cautiously while negotiating the trade pact with the US.

The expert added that Trump's trade threat is rapidly losing credibility as despite more than three months of pressure, only two countries -- the UK and Vietnam -- have agreed to the USA's one-sided terms.

From Japan and South Korea to the EU and Australia, countries are resisting Trump's trade deals that demand tariff cuts without reciprocal US concessions, mandate guaranteed purchases of American goods, and leave the door open for future tariffs even after a deal is signed, the GTRI said.

A team of Indian trade negotiators will soon visit Washington to further talks for the proposed Bilateral Trade Agreement (BTA).

"India should stay the course and avoid trading away core sectors like agriculture. A hasty deal under pressure could have irreversible consequences, especially when such agreements may not survive the next shift in US politics," Srivastava said.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.

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