The Indian government has informed Parliament that the U.S. has not yet imposed reciprocal tariffs. Discussions are ongoing to negotiate a fair Bilateral Trade Agreement focusing on lowering import duties and enhancing market access. In 2023, bilateral trade reached USD 190.08 billion, with India enjoying a notable trade surplus against the U.S.
In a recent update to Parliament, the Indian government clarified that the United States has not yet imposed reciprocal tariffs on India. This announcement comes shortly after President Donald Trump’s criticism of India’s high tariffs, which he described as “very unfair”. He indicated intentions to impose reciprocal tariffs from April 2 unless changes are made by nations imposing tariffs on American products.
Jitin Prasada noted that discussions between India and the United States will revolve around negotiating a beneficial, multi-sector Bilateral Trade Agreement. Key focus areas include increasing market access, along with reducing both tariff and non-tariff barriers, and improving supply chain integration.
On February 13, the U.S. issued a memorandum addressing reciprocal trade, detailing that the commerce secretary and the U.S. Trade Representative will investigate any harm to the U.S. caused by non-reciprocal trade arrangements. A report with proposed remedies for each trading partner is expected.
In alignment with commitments made during Prime Minister Narendra Modi’s recent visit to Washington, both nations aim to more than double their bilateral trade to USD 500 billion by 2030. The first phase of the Bilateral Trade Agreement is targeted for negotiation by fall 2025.
Trade figures indicate that U.S.-India relations have flourished, with trade reaching USD 190.08 billion in 2023; of this, goods accounted for USD 123.89 billion and services USD 66.19 billion. India exported goods valued at USD 83.77 billion to the U.S., while imports were USD 40.12 billion, yielding a trade surplus of USD 43.65 billion for India.
From 2021 to 2024, the U.S. emerged as India’s largest trading partner and remains one of the few countries where India enjoys a trade surplus. Prasada emphasized that India is actively working with the U.S. to enhance bilateral trade in a mutually beneficial manner, as exporters aim to diversify their trade baskets.
On Monday, Commerce Secretary Sunil Barthwal informed a Parliamentary panel that negotiations regarding trade tariffs are ongoing and that no agreement has been finalized yet. He addressed recent statements made by President Trump, who asserted that India had agreed to significantly reduce its tariffs.
In summary, the Indian government has assured Parliament that no reciprocal tariffs from the United States are currently in effect. Negotiations between the two countries focus on establishing a fair Bilateral Trade Agreement and enhancing market access. The burgeoning trade relationship already shows promising numbers, with a significant surplus in India’s favor. Continuous dialogue aims to navigate tariff discussions and foster mutually beneficial trade ties moving forward.
Original Source: www.hindustantimes.com
