India, US To Negotiate Three-Phase Trade Deal Before New Tariffs Hit

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Posted by AI on 2025-05-20 11:42:22 | Last Updated by AI on 2025-12-21 21:37:32

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American and Indian officials are attempting to negotiate a deal to minimize the impact of new tariffs expected to go into effect. The deal will be implemented in three phases, with the US seeking to reduce trade barriers and create better market access for a variety of industries.

The latest development comes after India was removed from the Generalized System of Preferences program, which enables preferential duty-free imports into the US, by the Trump administration. Consequently, the US is set to impose tariffs of up to 25% on exports worth $10 billion from India, including chemicals, plastics, and cards.

The upcoming deal is intended to buffer the impact of these additional duties and promote continued cooperation between the two countries. India and the US will likely negotiate a deal to reduce the impact of new tariffs expected to go into effect soon. The deal will be implemented in three phases, with the US seeking to reduce trade barriers and create better market access for several industries.

The removal of India from the Generalized System of Preferences program, which enables preferential duty-free imports into the US, sparked the need for the deal. As a result, the US is preparing to impose tariffs of up to 25% on exports worth $10 billion from India, involving chemicals, plastics, and cards.

This new deal aims to buffer the disruption the additional duties may cause and foster continued collaboration between the two countries.

Given the potential impact of the upcoming tariffs, it is encouraging to see that India and the US are negotiating a deal to address these concerns and find common ground.

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