NEW DELHI: As India engages the US, working overtime to stave off President Donald Trump’s reciprocal tariff threat, govt said in a studied response that the ongoing talks for a mutually beneficial multi-sector bilateral trade agreement (BTA) by 2025 fall should be seen in the context of India’s recent lowering of tariffs for key developed countries like the UAE, Australia, Norway and Switzerland.
Following commerce minister Piyush Goyal’s three-day visit to the US, during which he held talks with the commerce secretary and trade representative, official sources speaking on condition of anonymity said it’s natural that both India and the US have their interests and sensitivities and these are legitimate matters for a discussion.
Even in the middle of negotiations for a deal, Trump has continued to target India for “massive tariffs”. His remark Friday that India has agreed to “cut their tariffs way down now because somebody is finally exposing them for what they have done” drew criticism from opposition which accused Modi govt of acting under pressure from Trump.
Govt sources recalled that, during the first Trump administration, discussions took place about a limited trade deal between the two nations. “For various reasons, it did not produce an outcome. Since discussions have just begun, it would be premature to talk about its details,” said a source, adding there’s also a context for each dimension, that would reflect the interests of both sides.
“It would be recalled that India has reduced its average applied tariffs significantly for key developed countries like Australia, UAE, Switzerland, Norway, etc, under the recently concluded mutually beneficial bilateral trade agreements. Similar negotiations are currently under way with European Union and UK, among other partners. The ongoing discussions with the US should be seen in this context,” he said.
In February 2025, India and the US agreed to negotiate the first tranche of a mutually beneficial deal. Modi and Trump agreed to designate representatives to advance negotiations.
“They were to work towards increasing market access, reducing tariff and non-tariff barriers and deepening supply chain integration. Accordingly, an Indian delegation led by the commerce and industry minister visited Washington from 3-6 March 2025,” said another official.
“It engaged the US commerce secretary, the US trade representative and their teams. Discussions on tariffs and other aspects of trade that were highlighted during PM’s visit to Washington DC are an ongoing process. ,” he added.
