As US President Donald Trump is pursuing a tariff war, India and the United States are negotiating a mutually beneficial trade agreement, according to the Narendra Modi governmentread moreThe Narendra Modi government has told the parliament that India and United States are negotiating a trade agreement.The development comes as India, along with other countries, is in a race to cut a deal with US President Donald Trump to minimise the fallout from the tariff war that he is about to unleash on the world. While he has so far announced tariffs on Canada, Mexico, and China, and sector-specific tariffs, reciprocal tariffs are set to be announced after April 2 in which India may be particularly targeted.AdvertisementTrump has regularly
slammed India an abuser of trade and has flagged high tariffs and trade imbalance — India has a trade surplus with the United States.In a written response to a question, Union Minister of State for Commerce and Industry Jitin Prasada told the Lok Sabha on Tuesday that India and the United States are negotiating a mutually beneficial, multi-sector bilateral trade agreement.At the same time, Prasada hinted that other ways are also being adopted to minimise the fallout from Trump’s tariffs.Indian exporters are working towards diversifying trade basket and export destinations, said PrasadALSO READ:
As Trump pauses tariffs on Canada & Mexico, here’s complete tariffs’ timelinePreviously, the Ministry of External Affairs (MEA) had said that the
trade agreement was discussed during Prime Minister Narendra Modi’s visit to the United States last month.On the broader aspect of India-US trade relationship, Prasada said, “Under the ambitious ‘Mission 500’, both countries aim to more than double US-India trade to $500 billion by 2030 to be achieved by deepening the trade relationship across multiple sectors. Both countries plan to negotiate a mutually beneficial, multi-sector Bilateral Trade Agreement. Both countries would focus on increasing market access, reducing tariff and non-tariff barriers, and enhancing supply chain integration.”AdvertisementIn addition to sector-specific and country-specific, Trump on Feb. 13 announced ‘reciprocal tariffs’ on all countries, which mean that the United States will impose the same tariff on a country’s products that the other country imposes on US products.Under Trump’s executive order, Commerce Secretary Howard Lutnick will study all countries’ tariffs by April 1 and submit a report to the White House and then Trump can theoretically start imposing tariffs on April 2, according to Yahoo Finance.ALSO READ:
Trump eyes $1 trillion from reciprocal tariffs, risks sowing uncertainty & widening trade conflictHowever, tariffs are not expected immediately on April 2 as countries are bound to negotiate deals with the United States to minimise the fallout from tariffs.AdvertisementIn case of India, CNBC TV18 has quoted sources as saying that the Trump administration has sought zero tariffs on almost all products except agricultural products traded between India and the United States. Sources further said that there are unlikely to be any relaxation to India in case of reciprocal tariffs.More from India
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India & US negotiating mutually beneficial trade agreement, govt tells parliament
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India & US negotiating mutually beneficial trade agreement, govt tells parliament
