India and the US Discuss Trade Interests Amid Tariff Claims from Trump
India and the US are discussing trade interests and sensitivities but say it is too early to disclose detailed terms, particularly regarding tariffs. President Trump claimed India has massive tariffs and that New Delhi agreed to reductions. Ongoing negotiations prioritize creating a bilateral trade agreement, with emphasis on mutual benefits and market access.
India and the United States have engaged in discussions regarding trade interests and sensitivities, emphasizing that it is too early to provide detailed terms, including tariff reductions. This statement arose following claims made by US President Donald Trump, who asserted that India imposes significant tariffs, suggesting that New Delhi had agreed to reduce its levies on American exports.
Sources familiar with the discussions noted that India and the US aim to negotiate a multi-sector bilateral trade agreement by Fall 2025, having previously agreed to commence negotiations in February. The ongoing discussions, highlighted during Prime Minister Narendra Modi’s recent trip to Washington, focus on tariffs as a crucial aspect of trade relations.
A source stated, “It is natural that both countries have their interests and sensitivities. These are legitimate matters for discussion.” They emphasized the early stage of the talks, deeming it premature to disclose specifics. Both parties have exchanged views on various issues, ensuring that each country’s interests are considered in the negotiations.
During a press briefing, Trump reiterated his claims that the US has suffered significant trade disadvantages, identifying countries such as India and China as part of this narrative. Trump claimed that India’s tariffs obstruct American businesses, stating, “India charges us massive tariffs, massive. You can’t even sell anything into India, it’s almost restrictive.”
Officials highlighted that Trump’s assertions on tariffs lacked substantial support from trade figures. In the context of recent trade agreements, India has notably reduced tariffs for key countries like Australia and the UAE and is currently pursuing trade negotiations with both the European Union and the United Kingdom.
Foreign Secretary Vikram Misri refrained from elaborating on Trump’s remarks during a media briefing, stating, “I will not get into that at this point in time because these are ongoing discussions.” He added that tariff liberalization is central to several recent trade agreements finalized by India, which further contextualizes current negotiations with the US.
The Ministry of External Affairs emphasized that the ongoing trade deal aims to enhance bilateral trade in goods and services, reduce barriers, and improve supply chain integration. In February, Modi and Trump agreed to appoint senior representatives to facilitate the negotiations, resulting in a visit by Indian officials to Washington to engage with their US counterparts on trade matters.
Previous negotiations during Trump’s first term on a limited trade deal did not yield results, yet India has already implemented tariff reductions on key US products to meet certain political considerations. Furthermore, authorities are exploring the potential for additional tariff cuts as part of the broader trade discussion with the United States.
In conclusion, India and the United States are currently engaged in negotiations aimed at establishing a comprehensive bilateral trade agreement, with a focus on addressing tariff concerns. While President Trump has made claims about high tariffs imposed by India, Indian officials maintain that discussions are in the early stages and specific details remain undisclosed. The ongoing trade talks signify a mutual interest in enhancing economic relations, with both sides recognizing the complexity of their respective trade sensitivities.
Original Source: www.hindustantimes.com
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