In US Trade Deal Race, India Seeks Lower Tariff Than Indonesia: Report
Trump said Tuesday the US will impose a tariff rate of 19% on imports from Indonesia, down from a threatened 32%, and will be able to ship American goods to the country tariff-free. The US president later told reporters that the India deal would be "along that same line" and "we're going to have access into India." On Wednesday, he again said the US was "very close" to a deal with India.
India is seeking more favourable rates than Indonesia and the 20% tariff Trump has said he'll impose on Vietnam, officials in New Delhi said, asking not to be identified because the discussions are private. The US and India are working toward a deal that would reduce proposed tariffs to below 20%, Bloomberg News previously reported, with a negotiating team currently in Washington to advance the talks.
New Delhi is hoping for a tariff that would give it a competitive advantage against its peers in the region, officials said. India believes the US doesn't view it as a transhipment hub like Vietnam and other Southeast Asian nations, and negotiations so far suggest India's tariff rate would be better than those countries, one of the people said.
The Ministry of Commerce and Industry didn't immediately respond to an email seeking further comment.
GLOBAL INSIGHT: Delhi's Trade Math in Talks with Trump
Soumya Kanti Ghosh, chief economist of State Bank of India, and a member of the prime minister's Economic Advisory Council, said the negotiating team would be hoping to bring the tariff down to below 10%. "And in the bargain, the US will expect significant concessions for its goods when they decide to enter India," he said.
While India is unwilling to open up the agricultural and dairy sectors, it may give concessions in non-agricultural sectors, he said.
India has already proposed to reduce tariffs on American industrial goods to zero if the US does the same. New Delhi has also offered greater market access to some American farm products, and has also raised the possibility of buying more Boeing Co. planes.
Aside from Indonesia, Trump has also announced trade deals with the UK and Vietnam, and a truce with China. Trump said Jakarta had agreed to purchase $15 billion in US energy and $4.5 billion worth of agricultural products along with Boeing planes.
The latest development shows that tariff rates are gravitating toward 15%-20%, a range that Trump himself has indicated as his preferred level, said Brian Tan, Barclays Plc's economist in Singapore. The tariff letters sent to trading partners so far are likely a negotiating tactic to bring governments back to the table with better offers for the US, he said, "allowing the Trump administration to secure superior 'deals'."
Malaysia's trade minister said he's waiting to see the details of the Indonesia agreement and the country is still in negotiations with the US on its own tariffs, The Star reported.
"Most importantly, we must ensure that this is a negotiation beneficial to both countries," Tengku Zafrul, minister of investment, trade and industry, was quoted by the newspaper as saying. "It must be win-win."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
21 minutes ago
- The Hindu
Visakhapatnam, Ranchi, Vijayawada, Nashik and Raipur emerge as career hubs in LinkedIn study
LinkedIn's inaugural 'Cities on the Rise' list has identified Visakhapatnam, Ranchi, Vijayawada, Nashik and Raipur, in that order, as the fastest-growing non-metro hubs where professional opportunity is growing. This location-based ranking is powered by LinkedIn's exclusive data that captures growth in hiring, job creation and talent inflows across India, said a press release. The report holds significance as four out of five Indian professionals are looking to switch jobs this year. The list highlights emerging tier-2 and tier-3 growth pockets for professionals looking to relocate, tap into new industries, or grow their careers locally. Rajkot, Agra, Madurai, Vadodara and Jodhpur are the other cities that made it to the top 10. In a communication, Nirajita Banerjee, LinkedIn Career Expert and India Senior Managing Editor says, 'The influx of GCC investments, the local MSME boom, and the government's vision of a Viksit Bharat are collectively turning smaller cities into serious career hubs. This means, for many Indians, meaningful career progress no longer demands moving to a big city. Because these 10 rising cities offer real opportunities across industries, functions and roles.' Companies in Tech, Pharma and Finance are hiring for Business Development and Engineering functions. Business Development roles are the top hiring drivers in 6 out of 10 Cities on the Rise, including Nashik, Raipur, Rajkot, Agra, Vadodara and Jodhpur. For professionals in Vishakhapatnam, Vijayawada and Madurai, most job opportunities are emerging in the Engineering function. Sales, Operations and Education are other key functions where professionals in tier-2 and tier-3 cities can look for jobs, says the report. The government is building smarter cities to turn hometowns into career hotspots. The Central and state governments' push to local development is playing a crucial role in the rise of emerging cities, especially for Ranchi where smart city initiatives are making the capital a go-to for Jharkhand's professionals; and Rajkot where urban planning to improve road connectivity is fuelling economic growth. Chhattisgarh government's ambition of 'Naya Raipur' is also ramping up investments in the city's infrastructure.
Indian Express
21 minutes ago
- Indian Express
The DOGE inspired bill that could break—or cement—Trump's govt overhaul
In the early hours of Thursday morning, US Vice President JD Vance cast a tie-breaking vote that advanced one of the most contentious pieces of legislation in President Donald Trump's second term – a $9 billion federal spending rollback pitched as a return to fiscal sanity. The bill, now before the House, is the first major victory for Trump's embattled Department of Government Efficiency (DOGE) initiative, a cost-cutting crusade born of Silicon Valley bravado and steered until recently by Elon Musk. The legislation slashes funding for foreign aid, public broadcasting, and what the White House calls 'politicized bureaucracy.' Roughly $8 billion will be withdrawn from international aid and development programs, while another $1.1 billion is set to disappear from the Corporation for Public Broadcasting, a longtime Republican target that helps fund NPR and PBS. Vance defended the cuts as necessary to 'restore fiscal sanity' and eliminate 'ideologically slanted' or inefficient programs that no longer served national interests. The Trump administration argues that such sacrifices are necessary to restore fiscal discipline. Supporters insist the bill trims fat, not muscle. But humanitarian groups and international health advocates warn of consequences far more severe: disrupted vaccination programs, halted food aid shipments, shuttered water projects, and damaged diplomatic relationships. 'This could cripple efforts to fight preventable disease,' one aid official said, 'and leave America looking callous.' Even some within the GOP have expressed quiet discomfort with the method, if not the mission. Senator Lisa Murkowski described the process as 'agonizing,' voicing concern about the impact on rural health care in her state. Senate Minority Leader Mitch McConnell also broke ranks, voting with Democrats. This may be a pyrrhic win for DOGE, the once-feared government efficiency team created by Musk. Since Trump returned to office, DOGE has been granted unprecedented authority to fire employees, shred contracts, and cancel funding streams. At its peak, DOGE promised to slash $2 trillion from the federal budget. That number has since been revised down to $150 billion. But the team's trajectory has been anything but smooth. According to The Wall Street Journal and Politico, at least eight senior DOGE staffers have quit, been sidelined, or had their contracts terminated following Musk's acrimonious departure from the White House. Once considered Trump's 'first buddy,' Musk has become an unpredictable critic. Meanwhile, Trump himself has begun to show signs of DOGE fatigue. 'I would have done it differently, a little bit, maybe,' he told a Cabinet meeting. That came after a string of social media attacks on Musk, including calling him a 'TRAIN WRECK over the past five weeks.' Inside government buildings, the Musk imprint is fading. Where once there were armed guards and restricted floors, there are now empty cubicles and elevator buttons with no special markings. Many of Musk's reforms, particularly efforts to gut federal agencies and programs like DEI initiatives, have been blocked by courts or reversed by Congress. Others simply collapsed under their own weight. Yet DOGE has not entirely disappeared. Former DOGE operatives have been embedded in departments like Energy, Interior, and the EPA, where they continue to quietly influence policy. 'The mission of eliminating waste, fraud, and abuse is part of the DNA of the federal government,' said White House spokesman Harrison Fields, 'and will continue under the direction of the president, his cabinet, and agency heads.' Still, the president is pressing forward with his cost-cutting vision – if now on his own terms. The House must pass the bill by Friday to meet the procedural deadline. If it does, it will head to Trump's desk for a signature he's all but guaranteed to give. The DOGE initiative may be bruised, but its ethos of slash-and-burn austerity, repackaged in legislative form, appears poised to succeed.
The Hindu
21 minutes ago
- The Hindu
RRP Defence ties up with French firm CYGR to produce drones in India
RRP Defence Ltd., through its dedicated entity 'Vimananu Ltd.' has entered into a tie-up with French-American aerospace firm CYGR to set up a drone manufacturing facility in India under the 'Make in India' initiative. 'This partnership aims to deliver advanced drone systems designed for tactical, surveillance, and industrial use — leveraging French-American technology and Indian manufacturing capability,' RRP Defence said. The facility, to be located in Navi Mumbai, will support the production of next-generation drones including Hand-Launched Fixed Wing Drones, Nano Drones and Intelligence, Surveillance and Reconnaissance (ISR) Drones. Rajendra Chodankar, Chairman, RRP Defence Ltd., said, 'This collaboration is a defining moment for India's UAV ecosystem. By combining our local manufacturing strength and field understanding with CYGR's world-class drone technologies, we are building systems that meet India's unique operational needs.' George El Aily, Director, CYGR France, said, 'India is a key strategic partner for us, and we are bringing our cutting-edge UAV platforms to this growing market. Through this collaboration, we are not only transferring technology but also co-developing future-ready solutions that support India's defence and surveillance landscape.'
