India is working to address President Trump’s reciprocal tariffs while striving to strengthen trade relations. After discussions between Modi and Trump, both parties aim to negotiate a trade deal worth USD 500 billion by 2030, focusing on fair trade terms and reducing tariffs. Commerce Minister Goyal’s talks in Washington may help mitigate tariff impacts, as India’s lowering of certain tariffs demonstrates openness to cooperation amidst rising trade tensions globally.
India is exploring strategies to address President Donald Trump’s imposition of reciprocal tariffs. Trump has claimed that numerous nations have historically charged higher tariffs than the United States, which he deems unfair. For instance, he highlighted that India imposes auto tariffs exceeding 100% and that China’s tariffs are twice those of the US.
Despite these challenges, India is optimistic about reaching a resolution, spurred by discussions between Prime Minister Narendra Modi and President Trump on February 13 in Washington D.C. Both leaders committed to negotiating a substantial trade deal aimed at achieving annual trade of USD 500 billion by 2030, with a focus on fair trade terms.
As part of these discussions, a multi-sector Bilateral Trade Agreement (BTA) is under consideration, targeted for negotiation completion by fall 2025. This agreement aims to enhance bilateral trade in goods and services, expand market access, reduce various barriers, and strengthen supply-chain integration.
Commerce Minister Piyush Goyal’s visit to Washington this week involves critical talks with US counterparts about the proposed deal. There is hope that India may avoid the reciprocal tariffs imposed by the Trump administration earlier this month, especially as India has begun to lower tariffs on specific products to signal its willingness to cooperate.
The US remains India’s largest trading partner, with bilateral trade reaching USD 190 billion in 2023. Moreover, US investment in India during the fiscal year 2023-24 is notable, with direct investment inflows totaling USD 4.99 billion, reflecting the robust economic ties between the two nations.
President Trump’s tariffs on imports have raised global apprehensions, particularly with his recent increases in tariffs against Canada, Mexico, and China. This situation has incited fears of a broader trade conflict, highlighting the importance of ongoing negotiations and cooperative efforts between the US and India.
In summary, India is proactively seeking ways to manage the implications of President Trump’s reciprocal tariffs while fostering a strong bilateral trade relationship. Through strategic negotiations and concessions on tariffs, India aims to navigate the complexities of international trade, maintaining its position as a significant partner for the United States in the global economic landscape.
Original Source: m.economictimes.com
