India’s Response to US Tariffs and Trade Negotiations

India’s government clarified in Parliament that the US has not imposed reciprocal tariffs. Following President Trump’s comments on India’s tariffs, both nations are negotiating a multi-sector Bilateral Trade Agreement. In 2023, trade reached USD 190.08 billion. India plans to address tariff negotiations while maintaining strong bilateral trade relationships.

India recently clarified in Parliament that the United States has not implemented reciprocal tariffs against the nation. This statement follows President Donald Trump’s remarks deeming India’s high tariffs as “very unfair,” as he plans to introduce reciprocal tariffs on April 2 for nations with tariffs on American goods. Jitin Prasada stated that both nations aim to negotiate a multi-sector Bilateral Trade Agreement to enhance market access and reduce both tariff and non-tariff barriers.

On February 13, the US Commerce Secretary and the US Trade Representative were tasked with investigating potential harm to American interests from non-reciprocal trade relations with other countries. They are expected to submit a report outlining remedies for each partner. During Prime Minister Narendra Modi’s recent Washington visit, both countries committed to doubling bilateral trade to USD 500 billion by 2030 and aim to negotiate the first phase of a multi-sector BTA by Fall 2025.

Trade statistics for 2023 indicate that US-India trade reached USD 190.08 billion, with goods amounting to USD 123.89 billion and services at USD 66.19 billion. India exported goods worth USD 83.77 billion to the US while importing USD 40.12 billion, resulting in a significant trade surplus of USD 43.65 billion. Since 2021, the US has been India’s largest trading partner and one of the few nations where India maintains a trade surplus.

Furthermore, Mr. Prasada emphasized India’s commitment to ongoing engagements with the US to strengthen bilateral trade relations in an equitable manner. He highlighted that Indian exporters are focused on diversifying their export markets. Meanwhile, Commerce Secretary Sunil Barthwal reported to a Parliamentary committee that negotiations between India and the US on trade tariffs are ongoing, but no agreements have been finalized yet. Mr. Barthwal also addressed recent claims made by Donald Trump about India’s willingness to significantly reduce its tariffs.

In conclusion, India has reaffirmed that no reciprocal tariffs have been imposed by the United States, amidst ongoing diplomatic discussions aimed at strengthening bilateral trade relations. The countries are pursuing a comprehensive Bilateral Trade Agreement, with goals set to significantly boost two-way commerce in the coming years. Statistics indicate robust trade performance, with India maintaining a favorable balance with the US. Negotiations continue, but clarity remains on the pending trade tariff agreements.

Original Source: www.hindustantimes.com