To secure US trade deal, key ministries told to list what they can bring to talks table

Govt works to increase energy & defence purchase, lower duties on larger percentage of US imports

FOLLOWING US President Donald Trump’s tariff sledgehammer, the government has kicked off an exercise to thrash out concessions across sectors that can be offered in the tariff negotiations later this month. Key economic ministries have been asked to see what they can still afford to offer to sweeten New Delhi’s deal when the US team is here on August 25.

To reach an agreement, the Trump administration has been demanding much more than what the government has offered in its market access commitments, including lowering of tariffs across the board and removal of non-tariff trade barriers.

As policymakers grapple with Trump’s announcement of a 25 per cent tariff on goods from August 7, alongside an additional but unspecified “penalty” for its defence and energy imports from Russia, economic ministries have started sending in sectoral tariff concessions in their jurisdictions.

There are indications oil refiners have started reducing Russian oil purchases. Some of these concessions, if calibrated well, could ensure an opening up of the domestic economy, sources aware of discussions at the highest levels told The Indian. In fact, it was an external crisis that had forced the reforms of 1991.