In opposition to the recent observations made by U.S. President Donald Trump, the Indian government has formally clarified that it has made no commitments to reduce its import tariffs on U.S. products, thus making the trade negotiations between the two countries all the more complex.
Trump’s Declaration
Trump asserted, on Friday, that India had agreed to cut tariffs. He criticized New Delhi for putting “massive tariffs” on the imports from the U.S.
Moreover, he insisted that these reductions resulted from his administration’s exposé and confrontation of India’s tariff policies. Furthermore Trump stated “India charges us massive tariffs, massive; you can’t even sell anything into India.”
He further claimed that India has agreed to reduce tariffs since “somebody’s finally exposing them for what they’ve done.” India’s official response.
Official Response from India
In turn, Indian officials stated that no such commitments had been made. Commerce Secretary Sunil Barthwal told the Parliamentary Standing Committee on External Affairs that India and the U.S. are discussing a mutually beneficial bilateral trade agreement.
He said that long-term cooperation is prioritized over adjustments in tariffs through negotiations. There has not yet been any special commitment to lowering tariffs—political reactions in India.
Political Reactions
The opposition has used Trump’s remarks to besiege the government over the transparency of trade negotiations. Congress leader Pawan Khera took a swipe at Prime Minister Narendra Modi and the central government. He stated that if tariffs are ever lowered, it would be concerning the immense pressure the U.S. administration places.
Khera also questioned the lack of transparency and said any decisions to cut tariffs could have serious implications for domestic industries. “This is why we urge the government to tell us about every minutiae of any agreement reached.” he said.
Trade Negotiations
President Trump had anticipated in his usual rambunctious manner a faster reduction of import tariffs by India. With a cut in bourbon whiskey duties from 150% to 100%, hoping it would build better trade ties with the U.S.
In a meeting in New Delhi with President Trump, Prime Minister Modi discussed steps to ensure USD 500 billion in bilateral trade by 2030. They covered things like lowering tariffs, resolving trading disputes, and enhancing defense ties.
Pledge Towards a Balanced Trade
Indian exporters galvanized by the EEPC, on the other hand, expressed concerns about the potential tariffs on steel and aluminum by the U.S. The EEPC said that nearly USD 7.5 billion worth of engineering goods could be affected. This is due to India’s annual USD 20 billion in engineering exports.
In this backdrop, these exporters pleaded with the Indian government to reduce import tariffs on certain U.S. goods with hopes to advance a bilateral trade deal for favorable terms.
On the one hand, President Trump has given an impression that Indian import duties are at the door of some cuts; on the other hand, the official statements indicated that negotiations were still ongoing.
The two sides hope for a comprehensive trade deal that addresses mutual concerns while furthering each other’s economic interests. Concurrently, differences in public statements show trade negotiations are fraught with difficulties.
Meanwhile, various stakeholders will closely follow the developments concerning their industries. Keeping the focus on balanced and thoughtful trade that benefits both.
