U.S. President Donald Trump’s new tariffs have alarmed Indian exporters, prompting negotiations for a potential trade deal. The baseline tariff is set at 10%, with a 26% specific duty for India commencing soon. The Indian government is assessing the situation and engaging in discussions to mitigate impacts and aim for increased bilateral trade by 2030.

Recent increases in tariffs by U.S. President Donald Trump have caused concern among Indian exporters. Duties for Indian exports have risen to 26%, in addition to a baseline tariff of 10%, prompting fears of reduced foreign sales. However, negotiations for a potential trade deal are underway between Indian and U.S. officials to address these issues before the tariffs take effect next week.

According to a senior advisor to President Trump, he is “actively negotiating” trade agreements with India, Vietnam, and Israel, as reported by CNN. The 10% base tariff became effective immediately, while the specific 26% duty for India is set to commence on April 9.

The Indian government has acknowledged its careful examination of Trump’s tariff implications, with the Commerce Ministry gathering feedback from stakeholders and exploring potential opportunities arising from the changes. This proactive approach aims to mitigate adverse effects on Indian exports.

President Trump has referred to the new tariffs as “Liberation Day” tariffs, suggesting they will prevent foreign entities from undermining U.S. industries. Despite his criticism of high Indian tariffs, he maintained a friendly tone towards Indian Prime Minister Narendra Modi, indicating a desire to foster cooperative relations between the two nations.

The White House has suggested that removing Indian tariffs could potentially boost U.S. exports by at least $5.3 billion annually. However, experts are concerned that the increased tariff may negatively impact key export sectors such as electronics and jewelry, with losses estimated at $14 billion and $9 billion respectively.

Despite the challenges posed by the new tariffs, the Indian government is engaging in dialogue with the Trump administration to seek solutions. This is part of a broader objective to double bilateral trade to $500 billion by 2030, an ambition previously discussed during Modi’s meeting with Trump at the White House.

Both Indian and U.S. delegations are working to expedite a mutually beneficial bilateral trade agreement that addresses a wide range of interests, particularly in supply chain integration. The Indian government confirmed that discussions with the Trump administration will focus on enhancing trade, investment, and technology transfers.

In summary, President Trump’s implementation of new tariffs has raised significant concerns for Indian exporters, with potential impacts on key industries. Negotiations between India and the U.S. are ongoing, aimed at establishing a trade agreement before the tariffs take effect. The Indian government is committed to addressing these issues in an effort to enhance bilateral trade and maintain a cooperative relationship with the U.S.

Original Source: www.ndtv.com

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