NEW DELHI: With US President Donald Trump reiterating his menace to impose reciprocal tariffs from April 2, India on Friday stated the 2 nations are engaged in negotiations to construct a framework to deal with points equivalent to levies and market entry.
The response from the exterior affairs ministry got here two days after Trump stated he deliberate to go forward with reciprocal tariffs on India subsequent month, a transfer that would hit Indian exports. Exterior affairs ministry spokesperson Randhir Jaiswal stated the 2 sides are engaged in a dialog and “hopefully will come to some form of understanding”.
The Indian aspect is participating the US administration at numerous ranges to finalise a mutually helpful multi-sector commerce deal, Jaiswal advised a weekly media briefing. He didn’t reply on to queries on whether or not India expects a waiver on the reciprocal tariffs anticipated to kick in on April 2.
Additionally Learn: India pivot in a time of nice international churn
“India and the US are within the means of taking bilateral commerce negotiations ahead. The 2 governments are actively working to construct a framework for the BTA [bilateral trade agreement], which might intention to increase commerce, improve market entry, scale back tariff and non-tariff obstacles, and deepen provide chain integration,” Jaiswal stated.
When Prime Minister Narendra Modi travelled to Washington in February for talks with Trump, the 2 nations introduced they might negotiate the primary tranche of a bilateral commerce settlement by the autumn of 2025. Regardless of the continuing negotiations, Trump has railed in opposition to India’s tariff construction and stated a number of occasions he intends to go forward with the reciprocal tariffs.
Trump fired the newest salvo in an interview with Breitbart Information on Wednesday, describing India as a rustic with a number of the highest tariffs.
“I’ve an excellent relationship with India, however the one drawback I’ve with India is that they’re one of many highest tariffing nations on the planet. I consider they’re in all probability going to be reducing these tariffs considerably, however on April 2, we might be charging them the identical tariffs they cost us,” he stated.
Trump’s tariff threats have stoked fears of a world commerce conflict, with many nations unveiling counter-measures to deal with the state of affairs.
When Jaiswal was pressed whether or not India expects some concessions from the US, he stated: “We must look forward to these talks to return to a closure.”
He stated that inside the scope of the proposed commerce settlement, there may be an understanding that each nations will intention to increase commerce, improve market entry and scale back tariff and non-tariff obstacles.
In the meantime, minister of state for commerce and business Jitin Prasada knowledgeable Parliament on Friday that the Indian authorities is engaged with the US administration to “obtain enhancement and broadening of bilateral commerce ties in a mutually helpful and honest method”.
Along with negotiating the bilateral commerce settlement, the 2 sides have agreed to deepen financial ties and to greater than double two-way commerce to $500 billion by 2030 by deepening the commerce relationship throughout a number of sectors, Prasada stated in a written reply to a query from CPI-M lawmaker John Brittas in Rajya Sabha.
The US issued the “Memorandum on Reciprocal Commerce and Tariffs” on February 13 that directed the commerce secretary and US commerce consultant to research hurt to the US from any non-reciprocal commerce preparations adopted by commerce companions and to suggest cures, based mostly on which motion could be undertaken.
“As on date, there was no imposition of country-specific, together with reciprocal, tariffs by US on India. There was imposition of extra duties on metal and aluminium imports by US from all nations with none exemption,” Prasada stated.
“The influence of those duties, that are an enhancement over current such extra duties, is being carefully evaluated as a result of the truth that there are not any exemptions as in comparison with exemptions earlier to sure main exporting nations in these sectors,” he stated.
According to his “America First” coverage, Trump earlier this month introduced reciprocal tariffs on commerce companions with increased levies on US imports. India considerably decreased its common utilized tariffs for key developed nations equivalent to Australia, the United Arab Emirates, Switzerland and Norway beneath latest bilateral commerce offers. Individuals accustomed to the matter stated ongoing discussions with the US ought to be seen on this context.
In its Union finances for 2025-26, India additionally lowered tariffs on bourbon whiskey, wines and digital automobiles (EVs). These strikes have been seen as a sign to the US that India is open to reducing tariffs in particular sectors.
The US can also be pushing India to purchase extra American oil and fuel and army {hardware} to scale back the commerce deficit of virtually $45 billion. The US was India’s largest commerce accomplice, with commerce in items and providers price $190 billion in 2023.
