The Indian government clarified that the US has not imposed reciprocal tariffs. Both countries are negotiating a multi-sector Bilateral Trade Agreement to reduce tariffs and increase market access. Recent trade data highlights India’s surplus with the US, and efforts are underway to strengthen these ties further.
The Indian government recently clarified in Parliament that the United States has not implemented reciprocal tariffs against India. This statement follows US President Donald Trump’s remarks characterizing India’s tariffs as excessively high and unfair. Trump indicated that from April 2, 2023, the US would initiate reciprocal tariffs against countries imposing tariffs on American goods.
According to Jitin Prasada, India and the US are aiming to negotiate a multi-sector Bilateral Trade Agreement (BTA) to enhance market access. The primary objectives include reducing both tariff and non-tariff barriers and strengthening supply chain integration. This information was reported by the news agency PTI.
On February 13, the US announced a memorandum regarding reciprocal trade, prompting investigations into any harmful non-reciprocal trade arrangements and requiring reports detailing proposed remedies for trading partners. Furthermore, during Prime Minister Narendra Modi’s visit to Washington, both nations expressed a commitment to boosting two-way trade to USD 500 billion by 2030, with efforts towards negotiating the BTA by fall 2025.
In 2023, US-India trade amounted to USD 190.08 billion, with goods contributing USD 123.89 billion and services USD 66.19 billion. India’s exports to the US were USD 83.77 billion, while imports totaled USD 40.12 billion, resulting in a trade surplus of USD 43.65 billion.
Since 2021, the US has been India’s largest trading partner, with India maintaining a trade surplus in this bilateral relationship. Jitin Prasada emphasized ongoing efforts to enhance trade ties, pointing out that Indian exporters are diversifying their trade portfolios and markets.
Commerce Secretary Sunil Barthwal informed a Parliamentary panel that discussions on tariff negotiations between the US and India are ongoing, and no agreements have yet been finalized. This update comes in response to President Trump’s claims regarding India’s agreement to substantially lower its tariffs.
In conclusion, the Indian government’s recent updates in Parliament revealed that the US has not yet imposed reciprocal tariffs on India. Focused on negotiating a mutually beneficial trade agreement, both nations aim to increase market access and trade volume significantly by 2030. Current trade relationships indicate a strong surplus for India with the US, and ongoing negotiations reflect a desire for continued cooperation. Transparency and proactive strategies to enhance bilateral trade ties underscore the importance of this partnership.
Original Source: www.hindustantimes.com
