Analysts say why the UK-India trade agreement does not help US-India negotiations.

date
02/08/2025
Just a week after India and the UK reached a milestone free trade agreement, US President Trump announced on Wednesday that a 25% tariff will be imposed on India starting August 1. Faced with the dilemma of maintaining the favorable terms of the UK-India agreement while also seeking concessions from the US, the Indian government is currently responding cautiously, stating that they are "assessing the impact." Trump's move also signals a sharp turnaround in the recent optimistic tone of US-India negotiations - Indian Commerce Minister Piyush Goyal had just last week told the media that the negotiations were "going extremely smoothly" and expressed confidence in obtaining "tariff treatment better than trade partners."