India has taken a measured stance on US President Donald Trump’s threat to impose reciprocal tariffs starting April 2, pointing instead to ongoing trade deal negotiations between the two nations.
Trade Talks in Progress
- India and the US are negotiating a multi-sector bilateral trade agreement to address tariff and non-tariff barriers and expand market access.
- Commerce Minister Piyush Goyal recently visited Washington (March 4-6) to advance discussions.
- The first phase of the trade agreement is expected to be finalized by fall 2025.
India’s Strategic Approach
- India is evaluating ways to lower tariffs on key US exports, such as automobiles and agricultural products, while protecting domestic interests.
- Officials hope that successful negotiations will help India avoid Trump’s proposed tariffs.
Trump’s Stance on Reciprocal Tariffs
During his address to the US Congress, Trump named India, Brazil, Canada, China, Mexico, and the EU as nations imposing unfairly high tariffs on US goods. He vowed to introduce reciprocal tariffs starting April 2 to create a level playing field.
What’s Next?
- The April 2 deadline looms, but both sides are keen to continue discussions.
- India aims to finalize the first phase of the trade agreement before fall, with a long-term goal of doubling bilateral trade to $500 billion by 2030.
With diplomatic engagement ongoing, India remains hopeful that negotiation, rather than confrontation, will define its trade relations with the US.
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