India-US Trade Relations and Tariffs

Amid exporters' concerns about potential higher US tariffs starting April 2, the Ministry of Commerce and Industry informed the Lok Sabha that efforts are underway to remove tariffs and non-tariff barriers and enhance trade with the US.

Commerce Minister's US Visit

• Commerce Minister Piyush Goyal concluded a visit to the US, aiming to improve trade relations.
• The Ministry plans discussions with exporters from diverse sectors like automobiles, leather, textiles, electronics, and pharmaceuticals.
• These sectors will discuss possible tariff concessions for US negotiations.

Concerns Over Tariffs

• US President Donald Trump indicated India agreed to lower tariffs, labeling India's trade practices as restrictive for American businesses.
• US Commerce Secretary Howard Lutnick emphasized opening India's agriculture market to US products.

Indian Government's Stance

• Minister of State for Commerce and Industry Jitin Prasada stated in the Lok Sabha that efforts continue to engage the US to enhance trade in a fair manner.
• No reciprocal tariffs have been applied by the US on India yet.
• The focus remains on increasing market access, reducing barriers, and enhancing supply chain integration.

US Trade Memorandum

• The US issued a memorandum on February 13, 2025, to investigate harm from non-reciprocal trade agreements and propose remedies.
• As of now, no reciprocal tariffs have been enforced on India.

Mission 500

• India and the US aim to double trade to $500 billion by 2030 through deepening relations across sectors.

Recent Trade Developments

• Trump announced a 25% tariff on steel and aluminum from Canada and Mexico, affecting Wall Street negatively.
• Commerce Secretary Sunil Barthwal informed a Parliamentary panel that negotiations with the US are continuing, with no final agreement reached.
• Foreign Secretary Vikram Misri updated on the impacts concerning China and Europe.

Ravi Dutta Mishra, a Principal Correspondent with The Indian Express, reports on policy issues related to trade, commerce, and banking.