Speaking to CNBC TV-18, Das, the former head of the Centre for WTO Studies, acknowledged the positive momentum but also warned that the uncertainty under President Donald Trump remains a significant risk.
“I share the optimism, but under President Trump, certainty is never guaranteed. Tariffs may be cut now, but how long this lasts depends on his whims and fancies. We must not be complacent,” Das said.
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The deal which slashes US tariffs on Indian products from as high as 50% down to 18% could provide relief to labour-intensive industries.
Das said he agreement was “good news for textiles, clothing, leather, gems and jewellery, and marine sectors. However, some sectors need to be cautious, especially processed food products dependent on fresh fruits.”
Das also pointed to “far-reaching concessions” the US has extracted from other trading partners like Malaysia and Cambodia, specifically regarding food laws and economic security.
“If you decode the joint statement, India may have agreed to reduce tariffs on fresh fruits and downstream processing …The US has extracted far-reaching concessions from countries like Malaysia and Cambodia, especially on food laws and economic security. India has resisted so far, but these issues are still on the negotiating table. We must watch developments over the next few months carefully,” Das said.
