NEW DELHI: Even as the fine print of the India-US trade deal is awaited, key political and strategic doors appear to be opening from the revival of Quad momentum to the possibility of US President Donald Trump visiting India later this year.
External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio are set to hold talks in Washington, DC on Tuesday at 3.30 pm EST (around 2 am IST on Wednesday), amid heightened anticipation over the India–US trade deal.
At the heart of the announcement is Trump’s claim that India’s “reciprocal tariff” rate would be reduced from 25% to 18% under the deal. White House sources have also indicated that the additional 25% duty imposed on India in August for purchasing Russian oil would be eliminated.
However, as of now, there is no executive order, legally required for tariff changes to take effect.
New Delhi, for its part, has remained cautious. There has been no formal response to Trump’s assertion that India has stopped buying Russian oil, and officials are waiting for the Office of the US Trade Representative to share the detailed contours of the agreement.
The proposed 18% headline tariff places India in a relatively favourable position compared to competitors Vietnam, Bangladesh, Malaysia, and China. But experts say the real impact will depend on the fine print.
“Purchase of oil is largely left to the companies and many of them are in the private sector. They will purchase oil which is most cost-competitive,” said ex-foreign secretary and Rajya Sabha MP Harsh Vardhan Shringla.