U.S. President Donald Trump is set to impose reciprocal tariffs starting April 2 amid trade grievances with several nations, including India. However, India is optimistic about ongoing negotiations with U.S. officials during Commerce Minister Piyush Goyal’s visit, aiming for a bilateral trade agreement by 2025.
On April 2, 2024, U.S. President Donald Trump plans to implement reciprocal tariffs due to perceived unfair trade practices from several countries, including Brazil, India, and China. However, Indian officials remain optimistic about resolving the situation through ongoing trade negotiations with the United States, particularly during Commerce Minister Piyush Goyal’s visit to the U.S. this week.
During a speech to Congress, President Trump expressed his intention to address trade imbalances by imposing tariffs, heightening global economic concerns regarding potential trade disputes. Indian officials believe that constructive negotiations may allow India to avoid these tariffs, as both nations work to address various trade barriers during Goyal’s current discussions.
An informed source indicated that an Indian delegation is working under the framework of a previous joint agreement between President Trump and Prime Minister Modi to establish a beneficial bilateral trade agreement by 2025. Additionally, India aims to negotiate better trade terms, including tariff reductions on automobiles, in exchange for offers of professionals’ mobility and other concessions.
While Trump did not explicitly name India in his tariff announcement, he noted that countries like India impose significantly higher tariffs on American goods. He emphasized the U.S. would apply reciprocal tariffs based on the tariffs imposed on U.S. products by foreign nations, asserting that previous trade dynamics have been inequitable towards the U.S.
In light of ongoing trade talks, India’s trade deficit with the U.S. is notably smaller than that with other trade partners, standing at $45.7 billion compared to larger deficits with countries such as China. The U.S.-India bilateral trade was valued at $129.2 billion in 2024, with both countries setting ambitious goals to enhance their trade relationship moving forward.
India and the U.S. have agreed to negotiate terms for a multi-sectoral Bilateral Trade Agreement (BTA) by 2025, aiming to more than double their two-way trade by 2030. Officials are focused on creating fairer trade relations and fostering deeper integration within supply chains, which underscores India’s competitive automotive sector and potential for collaborative trade advancements with the U.S.
In summary, while President Trump’s planned reciprocal tariffs are set to take effect on April 2, India is engaged in active trade negotiations to potentially mitigate the impact. The Indian government remains hopeful for a constructive outcome that could lead to a mutually beneficial trade agreement by 2025. A deeper trade relationship is vital for both nations as they aim to address trade imbalances and fortify their economic connection.
Original Source: www.hindustantimes.com
