India US Trade Deal: External Affairs Minister Dr S Jaishankar on Monday spoke with his US counterpart Marco Rubio and said that India and the US have agreed on the importance of the early conclusion of the Bilateral Trade Agreement.
Discussions were also held on Indo-Pacific, the Indian Sub-continent, Europe, Middle East/West Asia and the Caribbean during the telephonic conversation.
Spokesperson for the United States Department of State, Tammy Bruce, shared the details of the conversation between Jaishankar and Rubio.
“The Secretary and External Affairs Minister affirmed the strength of the U.S.-India strategic partnership and discussed opportunities to deepen collaboration in the Indo-Pacific region,” Bruce said in an official statement.
The spokesperson added that both the leaders also discussed US reciprocal tariffs on India and how to make progress toward a fair and balanced trade relationship
Global stock markets witnessed intense selling on Monday after China announced retaliatory tariffs in response to US President Donald Trump’s import duties.
Trump has announced 26% reciprocal tariffs on India, significantly down from its Asian peers. Even though China retaliated with 34% tariff on US goods imports, India is not planning to put any reciprocal tariffs.
India does not plan to hit back at the US over the 26% reciprocal tariffs, a government official said, citing the ongoing trade deal talks between the two nations, news agency Reuters reported.
The government of India has found a clause of Trump’s tariff order that offers a possible reprieve for trading partners who “take significant steps to remedy non-reciprocal trade arrangements”, the official said.
According to this clause, the countries can be excused or get relief from the tariffs if they make efforts to fix unfair trade deals. Another official, who did not want to be named, said that New Delhi sees itself to be in a better place than other Asian nations like China, Vietnam and Indonesia, who have been hit by higher Trump tariffs, as India is one of the first nations to have already initiated talks with Washington over a trade deal – something the country considers an advantage.
After Trump’s tariff announcement on April 2, India’s Ministry of Commerce & Industry had said discussions are ongoing between Indian and US trade teams for the expeditious conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement.
Trump had earlier said that “India traditionally is just about the highest tariff country, they charge more tariffs than any other country”. He had indicated that the US has had “very good” talks with India on tariffs and said it is going to work out well between the two nations.
