Daijiworld Media Network- Washington

Washington, Jul 17: In a strategic push to bolster its trade ties with Washington, India is pressing for a more favourable tariff agreement with the United States than the one struck with Indonesia, ahead of an August 1 deadline.

This move comes after US President Donald Trump announced a revised 19% tariff on Indonesian imports, down from a threatened 32%, along with tariff-free access for US goods entering Indonesia. Trump hinted that a similar deal with India was imminent, saying, “We’re going to have access into India,” and reiterated that talks were “very close.”

However, according to top officials in New Delhi, India wants better terms than Indonesia or even Vietnam, which is facing a 20% tariff under Trump's current framework.

A senior Indian trade official, requesting anonymity, revealed, “We are aiming to secure a tariff rate below 20%, ideally around 10%, which would place India at a significant competitive advantage in the region.”

Trump’s trade strategy has seen new deals struck with countries like the UK, Vietnam, and Indonesia, while also maintaining a temporary truce with China. Indonesia's agreement includes large-scale purchases of $15 billion in US energy products and $4.5 billion in agricultural goods, alongside Boeing aircraft.

In comparison, India has offered substantial concessions in the industrial sector — even proposing zero tariffs on American industrial goods if reciprocal measures are taken. While agriculture and dairy remain sensitive sectors, India is reportedly open to limited access for select American farm products and additional aircraft purchases from Boeing Co.

Soumya Kanti Ghosh, Chief Economist at State Bank of India and a member of the Prime Minister’s Economic Advisory Council, said: “The team in Washington will push for tariffs below 10%. But the US will certainly expect more market access in return.”

India is also banking on its geostrategic position and large consumer base, arguing that it is not a transhipment hub like Vietnam, and hence offers more direct value to American exporters.

Meanwhile, regional nations are also keeping a close eye. Malaysia’s trade minister, Tengku Zafrul, told The Star that his country is still in talks with Washington and awaiting the full terms of the Indonesia deal before committing.

According to Brian Tan, economist at Barclays Plc, the Trump administration’s tactic appears to be consistent: “The 15%-20% tariff band seems to be Trump’s preferred zone. Initial letters with high tariffs are likely aimed at drawing partners back to the table with better counteroffers,” he said.

As the deadline nears, all eyes are now on how far India can go in securing a “win-win” deal that not only meets US demands but also protects domestic interests across sensitive sectors.