US, India in Talks on Trade Deal That May Cut Tariff Below 20%
Bloomberg3 days
Report: US, India in Talks to Reduce Tariffs to Below 20%
Above: U.S. President Donald Trump and Indian Prime Minister Narendra Modi shake hands on Feb. 13, 2025. Image copyright: Jim Watson/AFP/Getty Images
The Spin
Pro-Trump narrative
This trade deal represents a strategic victory for both nations in countering China's economic dominance. India's willingness to negotiate stems from seeing a bigger geoeconomic opportunity to undercut China's manufacturing hub status while securing key supply chains and advanced technologies. The partnership addresses mutual economic dependence on China for critical goods ranging from steel and rare earths to pharmaceutical inputs.
Anti-Trump narrative
The U.S. is acting like a bully, using tariff threats to force concessions from trading partners at their expense. America is trying to pry open markets like India's agricultural sector, particularly soybeans and dairy products, after losing access to larger destinations like China and the EU due to its own tariff policies. These aggressive tactics put negotiators at loggerheads and can only result in stalemates.