NEW DELHI: The US-China trade deal has increased the headache for Indian negotiators, who are once again headed to Washington DC to discuss the proposed bilateral trade deal.While signalling movement towards a deal between the world’s two largest trading nations, the 90-day truce, which will see them slash tariffs by 115 percentage points, opens the door for the flow of goods from China.As a result, some of the interest in Indian products is bound to come down as supply lines will reopen for 90 days, apart from some front-loading of consignments in case the pause is not extended.

India will, however, retain an edge over some others in the region, including Vietnam, which faces higher “reciprocal tariffs”. But the rush to quickly recalibrate, if not relocate, some production out of China will slow down.The announcement also mounts pressure on New Delhi to seal a deal as early as possible given that the 90-day pause on reciprocal tariffs for countries, other than China, is due to end on July 9. Already, the UK has agreed to the terms of a deal with the US, and others such as South Korea and Israel, along with several others, are in talks.Indian govt officials are hoping for an “early deal” but would obviously want New Delhi’s interests to be taken on board amid enormous pressure from the Trump administration to push ahead with its demands, be it lowering tariffs on automobiles, whiskey, or farm products, a key ask from the US side.