Last Updated:July 05, 2025, 07:00 IST
Sources say that India is very clear that it cannot afford to bend under pressure from the Americans
There are indications that India is prepared for the worst, which could mean the tariff could be as high as 26%. File image/ANI
The clock is ticking. India is waiting with bated breath for the tariff deal announcement by American President Donald Trump. The deadline for the 90-day reprieve given by him ends on July 9, and the negotiating team headed by Rajesh Agarwal has returned to India. Sources say that his return does not indicate the failure of the deal talks either.
However, there are indications that India is prepared for the worst, which could mean the tariff could be as high as 26%. With India having an export surplus with America and it being India’s largest trade partner, it’s a deal that New Delhi does not want to break. But the government has made it clear that the deal will not be at the cost of India’s dignity. Two things show this. One, commerce minister Piyush Goyal’s statement: “India discusses on its own terms and we never make a trade deal based on a timeline. When the deal is good, fully matured, and in national interest, then we accept it.”
Second, and more importantly, India’s stand at the World Trade Organization (WTO) is very clear to America. It said in the context of possible high restrictions by the US on India, “The proposed suspension of concession or other obligations would take the form of an increase in tariffs on selected products originating in the US. Without prejudice to the effective exercise of its right to suspend substantially equivalent obligations, India reserves its right to suspend concessions or other obligations.”
Sources say that India is very clear that it cannot afford to bend under pressure from the Americans. The Narendra Modi government has faced many barbs from the Congress based on Trump’s public claims on the recent ceasefire with Pakistan. Congress has alleged that if the tariff deal is good for India, then Trump’s claims will be proven right. So in case the deal fails to satisfy India’s concerns, the BJP sees this also as an opportunity to prove the naysayers wrong.
But it’s clear that the PM has given a mandate and there has been backroom work done. Sources say that India has already begun to look at alternative markets that would make up for what it could lose in America. Apart from this, the commerce minister has met with many stakeholders, including exporters, to ensure their worries are eased and that they, too, should be ready to face all competition.
The message from the WTO stand vis-à-vis automobiles is clear. India would not bend nor buckle under Trump’s pressure, and it’s prepared for the worst, though hopeful as well.
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als…Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als… Read More
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