A significant trade agreement between India and the United States could be finalized in the near future, according to a senior Trump administration official, though complications arising from India's economic interactions with Russia have created challenges in the negotiation process.
Trade Deal Progress Amid Complications
Kevin Hassett, the National Economic Council Director under the Trump administration, revealed during a CNBC interview on Monday that both nations have been "very close" to reaching an agreement. When questioned about the trade pact with India, Hassett confirmed that Washington has repeatedly approached completion of the deal but acknowledged the complex nature of current negotiations.
The trade discussions between India and the US have been ongoing since March, with six rounds of negotiations completed thus far. Hassett specifically pointed to India's relationship with Russia as a complicating factor in the bilateral discussions, noting that the interconnection between India's actions with Russia and its dealings with the United States has created a multifaceted situation.
Russia's Shadow Over Trade Relations
The complexity Hassett referenced stems largely from US concerns about India's crude oil trade with Russia. Trump administration officials have openly accused India of indirectly supporting Russia's military operations in Ukraine through its petroleum purchases from the country.
This tension has manifested in concrete trade actions, with US President Donald Trump imposing 50% tariffs on Indian exports to the United States. Notably, 25% of these tariffs represent punitive measures specifically targeting India's crude oil trade with Russia, reflecting the administration's determination to discourage economic relationships that might support Russian military capabilities.
Indian Perspective and Safeguards
Meanwhile, Indian Commerce and Industry Minister Piyush Goyal expressed optimism about the trade agreement's prospects during an event in Delhi on Tuesday. The minister indicated that positive news would emerge once the deal reaches a state that is "fair, equitable and balanced" for both nations.
Goyal emphasized that the proposed agreement would include specific protections for India's agricultural and fishing communities, addressing concerns about potential negative impacts on these vital sectors of the Indian economy. This assurance reflects India's commitment to ensuring that any trade deal serves its national interests while strengthening economic ties with the United States.
Despite the complications highlighted by Hassett, both nations appear committed to resolving their differences. The economic official noted that the United States remains "quite hopeful" about reaching an agreement soon, describing India and America as "good friends" who are working through multiple variables in their relationship.
