TMTPOST -- India   is   seeking   to   reach a   trade   agreement that allows   the   upcoming   tariffs imposed by the   United States much lower   than its Asian peers   which   have received letters   dictating new reciprocal   tariffs   starting next month,   according to a report on Thursday.

Credit：Freepik

India is seeking a trade deal at more favorable tariff rates than U.S. President Donald   Trump had agreed   with   Indonesia and   Vietnam,   Bloomberg learned from   officials in New   Delhi. India is hoping for a tariff that would give it a competitive advantage against its peers in the region,   according to the officials.   It   was said that New Delhi believes the U.S. doesn ’ t view it as a transshipment hub like Vietnam and other Southeast Asian nations, and negotiations so far suggest the tariff rate   that India   is   facing   would be better than those countries.

India ’ s negotiating team would be hoping to bring the tariff down to below 10%, the   report cited Soumya Kanti Ghosh, chief economist of State Bank of India, the largest government-owned lender, and a member of the prime minister ’ s Economic Advisory Council.   "And in the bargain, the US will expect significant concessions for its goods when they decide to enter India," Ghosh   said.   While New   Delhi   is unwilling to open   up   the agricultural   and dairy sectors, it   may   make concessions in non-agricultural sectors,   said the economist.

Trump on Tuesday said he   reached a trade deal   with   Indonesia that will charge   a 19% tariff   on   the Southeast Asian   economy, and stressed   the United States   exports   will be offered unprecedented   access.   "We will pay no tariffs. So they are giving us access into Indonesia, which we never had," Trump spoke with   reporters outside the White House. "That ’ s probably the biggest part of the deal. And the other part is they are going to pay 19%," he said.

In a subsequent   social   meda   post, Trump said   Indonesia will pay the   U.S. a 19% tariff   on   all goods exported to the U.S., while   U.S.   exports to   the country "are   to be Tariff and Non   Tariff   Barrier   FREE."   "If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying,"   he added.  

Trump   in the post   revealed he finalized the deal   after speaking with Indonesia ’ s   president   Prabowo Subianto, and Jakarta   agreed to open up its   "entire   market"   to   the U.S.   "This landmark Deal opens up Indonesia ’ s ENTIRE MARKET to the United States for the first time in History,"   Trump wrote   in the post.

If   the   tariff rate   Trump announced   is   accurate,   Indonesia would become the first trading   partner   receiving the Trump   administration ’ s cut in planned tariffs   through   trade   negotiations   by August   1. The 19% tariffs are inevitably lower than those Trump threatened last week.

Trump on July 7 shared screenshots of form letters to the leaders of 14 countries, informing them of new reciprocal   tariffs effective on   August   1. Among   the letters Trump said he   would impose   32% tariffs on Indonesia. The 32%   tariff rate was higher than the current baseline 10% level   and the same with the reciprocal tariffs   for Indonesia   Trump   announced on   April 2,   a date the president   proclaimed   "Liberation Day".

Trump later   Tuesday floated   "probably five or six"   deals following the trade pact with   Indonesia. A day later, the president eyed some   trade   deals   to be made   including that with India.

"We have some pretty good deals to announce," Trump told reporters at the start of a meeting with Bahrain's Crown Prince Salman bin Hamad Al Khalifa at the White House. He noted   a possible trade   deal   with India. "We have another deal coming   up, maybe   with India,"   he said, without   providing details.