India-US talks: Experts urge caution on trade pact; ‘hasty deal under pressure’ could backfire

India must not rush into a trade agreement with the United States that could compromise sensitive sectors like agriculture, trade experts warned on Sunday, pointing to aggressive US tactics even with its closest allies like EU. The caution comes as Washington has sent letters to 24 countries and the European Union, proposing tariffs as high as 50% on Brazil and 30% on major trading partners like the EU and Mexico, effective from August 1. Economic think tank Global Trade Research Initiative (GTRI) said India is not alone in facing US pressure.The US is in active talks with over 20 countries and is pushing for trade concessions from more than 90 others. “Yet most are resisting because they see these MASALA (Mutually Agreed Settlements Achieved through Leveraged Arm-twisting) deals for what they are politically driven, transactional demands offering no lasting trade certainty,” said GTRI Founder Ajay Srivastava. He pointed out that if the US can threaten countries like the EU and Mexico with tariffs, India should not expect a balanced agreement either.“India should stay the course and avoid trading away core sectors like agriculture.

A hasty deal under pressure could have irreversible consequences, especially when such agreements may not survive the next shift in US politics,” Srivastava warned. Another trade expert supported the sentiment, saying India must move cautiously in its ongoing trade pact discussions with the US. The expert noted that US president Donald Trump’s trade threats are rapidly losing credibility, as only the UK and Vietnam have accepted the US’s terms despite months of pressure.The think tank noted that countries ranging from Japan and South Korea to the EU and Australia are pushing back against Trump’s trade deals, which call for tariff cuts without matching US concessions, require assured purchases of American goods, and still allow room for future tariffs even after agreements are finalised. A team of Indian trade negotiators is expected to visit Washington soon to continue talks on the proposed Bilateral Trade Agreement (BTA).