The recently announced US-UK trade deal, though interim in nature, offers key insights for India’s ongoing trade talks with the US. The deal focuses on tariffs, economic security, and safeguarding domestic interests while providing mutual market access.
For the UK, the agreement secures tariff reductions on autos and steel, while resisting US demands on digital services taxes and food standards. The US, in turn, gains significant export opportunities in ethanol, beef, and aerospace components.
India must learn from the UK’s approach by defending its regulatory red lines and ensuring balanced reciprocity in trade negotiations. Critical sectors like steel, pharmaceuticals, and digital services need careful consideration to protect India’s long-term economic interests.