Business · Economy · 1 hr ago
Trump setback could increase US pressure on India for trade deal
Trade expert Ajay Srivastava says Trump may press India harder for a trade deal after Republicans suffered a setback in the US midterm elections.
He says Trump may seek a quick foreign policy and economic win to demonstrate US influence.
The proposed deal would require India to cut duties on many US goods, while the United States would keep its standard import tariffs.
The framework also envisages India aligning some policies with Washington and buying $500 billion in American goods over five years.
The US has offered no direct matching concessions, and India could still face extra tariffs after signing.
A US Supreme Court ruling struck down reciprocal tariffs imposed under emergency powers, weakening one tool Washington had used to encourage trade deals.
India is the only country still negotiating under this framework, according to Srivastava, who says it could also raise legal and diplomatic questions at the World Trade Organization.
Ajay Srivastava, a trade policy expert, said the Republican setback in the US midterm elections could lead President Donald Trump to increase pressure on India to conclude a trade deal.
Srivastava said Trump may seek a quick economic and foreign policy win to demonstrate US influence.
The proposed framework would require India to reduce duties on many US goods, while the United States would retain its existing standard tariffs, according to the Economic Times.
A February 6 joint statement envisaged $500 billion in Indian purchases of American goods over five years and reduced US reciprocal tariffs from 25% to 18%.
The US Supreme Court struck down the administration’s reciprocal tariffs on February 20, weakening a negotiating tool used to seek trade concessions.
- Who
- US President Donald Trump and the Indian government. Trade policy expert Ajay Srivastava discussed the potential pressure.
- What
- Trump could press India to conclude a bilateral trade agreement on US terms.
- When
- After the Republican setback in the US midterm elections; the results were underway, according to Mint.
- Where
- United States and India.
- Why
- Srivastava said Trump may seek a quick win to demonstrate US influence. The proposed deal could also advance US trade and economic priorities.
This story does not have two clearly opposing sides.
The White House imposed reciprocal tariffs through executive action and offered to reduce the additional duties to encourage trade negotiations.
A US-India joint statement provided for a reduction in US reciprocal tariffs from 25% to 18%.
The US Supreme Court struck down the administration’s reciprocal tariffs imposed under the International Emergency Economic Powers Act.
Mint reported that US midterm election voting results were underway and that a Republican setback was expected.
- Trade policy expert
- Ajay Srivastava
- Planned Indian purchases
- $500 billion in American goods over five years
- US reciprocal tariff reduction in joint statement
- 25% to 18%
- Supreme Court ruling
- February 20
- Possible additional US tariffs on Indian goods
- 15–18 percentage points over regular MFN duties
4 sources
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What people are saying
With foreign policy leverage failing against Russia, China, and Iran, Trump needs a quick win. Expect heightened pressure on India for a trade deal to prove American clout
The deal will essentially be economic coercion