Like Indonesia, India to open up entire market to the US: Trump
US President’s remarks raise concerns in India over potential tariff concessions and market access
New Delhi: While announcing that Indonesia has opened up its “entire market” under the trade deal, US President Donald Trump reiterated that his country would have a similar “access” to the Indian market. Experts want the Indian government to be cautious of exposing domestic sectors to US products.
“This landmark deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in history. As part of the Agreement, Indonesia has committed to purchasing $15 billion in US energy, $4.5 billion in American Agricultural Products, and 50 Boeing Jets, many of them 777’s,” Trump posted in Truth Social.
Indonesia will pay a 19 per cent tariff on goods exported to the US against a reciprocal tariff of 32 per cent, while US products will be imported tariff-free. If there is any transshipment from a higher tariff country, that tariff will be added on to the tariff paid by Indonesia. This is intended to avoid tariff circumvention.
He also mentioned about the deal to be made with India. “They are giving us access to Indonesia, which we never had. That's probably the biggest part of the deal...India is basically working along that same line. We're going to have access to India. You have to understand, we had no access to any of these countries. Our people couldn't go in and now we're getting access because of what we're doing with the tariffs..." he added.
Trump’s claim that the US will get full access to the Indonesian market at zero tariffs, while Indonesian exports will face a 19 per cent duty in the US, raises red flags. If India were to accept such a lopsided arrangement, it could expose its domestic sectors especially dairy and agriculture to duty-free US goods while gaining little in return,” cautioned GTRI.
India has raised objections about imports of US dairy products of cattle fed with animal products, GM feed as well agricultural products like rice and wheat, threatening the livelihood of small and marginal farmers in India. However, India is waiting for an announcement from Trump on the deal while experts are insisting on a joint statement by both countries.