President Trump will impose reciprocal tariffs on April 2 to address trade imbalances, targeting countries including India. Despite the threat, negotiations are ongoing, with India seeking to resolve tariff issues. The aim is to finalize a bilateral trade agreement by fall 2025 that promotes mutual economic growth.
US President Donald Trump announced reciprocal tariffs set to take effect on April 2, aiming to address perceived unfair trade practices. He identified several countries, including India, Brazil, and China, as having high tariffs on US goods. Despite this, Indian officials remain optimistic about reaching a resolution, citing ongoing negotiations with Washington. Commerce Minister Piyush Goyal is currently visiting the US to engage in these discussions.
Indian negotiations are focused on addressing tariff and non-tariff barriers as both nations seek a bilateral trade agreement. Reports suggest that if progress continues, India might avoid the impending tariffs, given the constructive discussions taking place. The goal is to establish the first phase of a mutually beneficial trade agreement by fall 2025.
The Indian delegation, led by Goyal, plans to discuss trade matters relevant to a joint statement made in February by President Trump and Prime Minister Modi. The negotiations aim to clarify terms of trade while addressing automobile tariff reductions in exchange for easing professional mobility between India and the US.
Recent comments from US Commerce Secretary Howard Lutnick indicated potential flexibility in the US approach to tariffs, which translated to positive outcomes for Asian markets, including India. During Goyal’s visit, he is scheduled to meet with key US officials to outline a roadmap for the trade agreement, enhancing bilateral relations further.
Trump emphasized the need for reciprocal tariffs as a measure to counterbalance historical trade disparities, calling out India for imposing tariffs higher than 100% on auto imports. He highlighted the factors contributing to a significant US trade deficit, particularly with major trading partners, while specifying that the US deficit with India is much lower compared to other nations.
In February’s meeting, Trump and Modi discussed deepening bilateral trade relations, aiming to double trade figures to $500 billion by 2030. A joint statement revealed agreements on enhancing market access, reducing barriers, and fostering supply chain integration.
India’s strategic meetings with the Trump administration aim to navigate through tariff impositions and promote a fair trade framework that would benefit both nations in the long term.
The imposition of reciprocal tariffs by the Trump administration signifies increasing tensions in international trade, particularly with India. However, ongoing negotiations indicate a pursuit of resolution. With a target set for a bilateral trade agreement by fall 2025, both nations are working to balance trade relations to facilitate mutual benefits. This situation develops amidst larger discussions of fairness in trade practices as both countries explore comprehensive frameworks to bolster economic ties.
Original Source: www.hindustantimes.com
