New Delhi may take the measure to secure a trade deal with Washington and prevent new tariffs
India’s government could reduce tariffs on more than half of its $23 billion in US imports as part of the initial phase of a trade agreement being negotiated between the two countries, according to Reuters. This significant concession aims to prevent Washington from implementing reciprocal duties as soon as April 2, which has caused market uncertainty.
According to an internal analysis conducted by New Delhi cited by the report, the implementation of reciprocal tariffs by the US could impact approximately 87% of India’s total exports to the country, which are valued at $66 billion.
To prevent this, India is considering a trade deal that would involve reducing tariffs on around 55% of the US goods that the country imports, which currently face duties ranging from 5% to 30%. New Delhi hopes to find a mutually beneficial solution to current trade tensions.
The development was reported on Monday – ahead of trade negotiations between the two countries that are currently taking place in New Delhi. A US delegation, led by Assistant Trade Representative for South and Central Asia Brendan Lynch, arrived in the Indian capital on Tuesday. Their visit comes after India’s Commerce and Industry Minister Piyush Goyal travelled to Washington earlier this month to discuss a Bilateral Trade Agreement (BTA), particularly with respect to tariff issues.
Goyal later told the country’s parliament that the government is engaging with Washington in order to eliminate tariffs and other barriers; however, he did not clarify whether any concessions have been made so far.
New Delhi maintained that any decisions on tariffs would not be rushed, according to an Indian Express report, despite Trump’s claim that India had already agreed to reduce its tariffs after being “exposed” for its restrictive trade practices. “They have agreed, by the way. They want to cut their tariffs way down now because somebody’s finally exposing them for what they have done,” he said in remarks from the Oval Office on March 8.
According to government data, the US has a trade deficit of $45.6 billion with India. In the past, US President Donald Trump has been vocal about India’s high tariffs, along with those imposed by other countries, condemning them as “very unfair.”
Meanwhile, New Delhi is looking to increase trade with China in order to counterbalance the economic pressure of impending US tariffs and offset potential losses, according to reports. The two BRICS members have been working on normalizing bilateral ties after a diplomatic and military standoff lasting nearly five years, which erupted when their troops clashed along a disputed border in the Himalayas in 2020.
(RT.com)
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