Updates on US Tariffs and India-US Trade Relations
The Indian government confirmed no reciprocal tariffs from the U.S. have been imposed, despite criticism from President Trump. Both countries are negotiating a multilateral trade agreement to enhance market access and trade relations. As of 2023, trade between India and the U.S. reached USD 190.08 billion, with India enjoying a significant trade surplus.
On Tuesday, the Indian government provided an update to Parliament regarding reciprocal tariffs with the United States, stating that no such tariffs have been imposed by the U.S. as of now. This announcement followed President Donald Trump’s criticism of the high tariffs charged by India, which he deemed as “very unfair,” and his intention to implement reciprocal tariffs starting from April 2 against nations imposing levies on American goods.
Jitin Prasada emphasized that India and the United States aim to negotiate a multi-sector Bilateral Trade Agreement (BTA) that would enhance market access, reduce import duties, and alleviate non-tariff barriers. This aligns with the broader goal of increasing supply chain integration between the two nations, as reported by news agency PTI.
On February 13, the U.S. issued a memorandum aimed at examining any non-reciprocal trade arrangements that could harm American interests. The U.S. Commerce Secretary and Trade Representative are tasked with investigating these setups and providing suggested remedies for each trading partner.
During a recent visit by Prime Minister Narendra Modi to Washington, India and the U.S. committed to more than doubling bilateral trade to reach USD 500 billion by 2030. Both countries agreed to start negotiating the first phase of the BTA by fall 2025.
In 2023, trade between the two nations amounted to an impressive USD 190.08 billion, consisting of USD 123.89 billion from goods and USD 66.19 billion from services. India’s goods export to the U.S. totaled USD 83.77 billion, while imports stood at USD 40.12 billion, leading to a trade surplus of USD 43.65 billion for India.
From 2021 to 2024, the U.S. emerged as India’s largest trading partner, remaining one of the few countries where India maintains a trade surplus. Jitin Prasada reiterated India’s commitment to strengthening bilateral trade ties in a fair and mutually beneficial manner.
Commerce Secretary Sunil Barthwal informed a Parliamentary panel on Monday that negotiations are ongoing, and no agreement on trade tariffs has been finalized yet. He addressed the committee after President Trump’s recent assertion that India had agreed to significantly lower its tariffs.
In summary, the Indian government has clarified that the United States has not enacted reciprocal tariffs against India, despite recent criticism from President Trump regarding high tariffs. Both countries are actively pursuing a multilateral trade agreement aimed at increasing trade and enhancing market access. With significant trade figures and ongoing negotiations, India continues to engage constructively with the U.S. to foster bilateral relations. This context underscores both nations’ goals of strengthening economic ties through fair and reciprocal trade practices.
Original Source: www.hindustantimes.com
