India talks trade with US amid reciprocal tariff concerns
India is actively engaging with the US to ease trade tensions as reciprocal tariffs loom from April 2. The Commerce Ministry assured the Lok Sabha on Tuesday that discussions aim to eliminate tariffs, reduce barriers, and enhance trade relations.
Commerce Minister Piyush Goyal wrapped up his US visit last Saturday, and the ministry will consult exporters this week. Key sectors like automobiles, leather, textiles, electronics, and pharmaceuticals will present their concerns about possible tariff concessions.
Concerns grew after US President Donald Trump claimed India had agreed to lower tariffs after being “exposed” for restrictive trade practices. US Secretary of Commerce Howard Lutnick also urged India to open its agriculture sector to American products.
Minister of State for Commerce and Industry Jitin Prasada told the Lok Sabha that India remains committed to fair and mutually beneficial trade with the US. He clarified that reciprocal tariffs have not yet been imposed, and both nations are working to increase market access and integrate supply chains.
On February 13, 2025, the US issued a memorandum directing a review of trade agreements. The US Trade Representative will propose remedies based on the findings, which could lead to future action. However, no reciprocal tariffs have been applied to India yet.
India and the US reaffirmed their economic partnership through a joint statement on February 13. Under the ambitious “Mission 500,” both countries aim to double trade to $500 billion by 2030. The initiative focuses on strengthening trade ties across multiple sectors.
Meanwhile, Trump announced a 25% tariff on Canadian and Mexican steel and aluminum, escalating trade tensions. US stock markets plunged on Monday, marking one of the worst trading days since 2022.
Commerce Secretary Sunil Barthwal informed a Parliamentary panel that trade negotiations between India and the US are ongoing, with no final agreement on tariffs. Foreign Secretary Vikram Misri also briefed the committee on trade developments with China and Europe.
India continues to push for favorable trade terms, aiming to protect domestic industries while strengthening economic ties with the US.
