Bilateral Trade Talks Underway, Carefully Examining Implications: Govt On Trump's Reciprocal Tariff On India
The Finance Ministry’s statement also added that Indian and US trade teams are engaged in talks to finalize a comprehensive, multi-sectoral Bilateral Trade Agreement
The Department of Commerce stated on Thursday that it is thoroughly reviewing the potential impacts of the measures and announcements made by US President Donald Trump in its initial official reaction to reciprocal tariffs on India.
“The Department of Commerce is engaging with all stakeholders, including Indian industry representatives and exporters, to gather feedback on their assessment of the tariffs and analyse the situation. Keeping in view the vision of Viksit Bharat, the department is also studying potential opportunities that may arise due to this shift in US trade policy,” the Ministry of Commerce and Industry said in an official statement.
The Finance Ministry’s statement also added that Indian and US trade teams are engaged in talks to finalize a comprehensive, multi-sectoral Bilateral Trade Agreement. "The negotiations cover a wide array of issues, such as supply chain integration, investment enhancement, and technology transfers," the statement added.
The US has imposed 27 per cent reciprocal tariffs on India, with a 10 per cent duty on all imports starting April 5 and an additional 17 per cent from April 10. This is part of a broader trade policy affecting several countries, including India.
“The US President has issued an Executive Order on reciprocal tariffs, imposing additional ad-valorem duties ranging from 10 per cent to 50 per cent on imports from all trading partners. The baseline duty of 10 per cent will take effect from April 5, 2025, while the remaining country-specific additional ad-valorem duties will be effective from April 9, 2025. According to Annex I of the Executive Order, the additional duty on Indian imports has been set at 27 per cent," the statement reads.
Also Read: What Is A Reciprocal Tariff? Here's How It Affects The Trade Relations Between Countries
PMO Calls For A High-Level Meeting
In response to US President Donald Trump’s reciprocal tariffs, the Prime Minister’s Office convened a high-level meeting on Thursday to thoroughly evaluate the potential implications of the tariff order. The meeting was presided over by the Principal Secretary to the Prime Minister, who led the discussions with key stakeholders. Senior officials from critical government bodies, including the Commerce Ministry, NITI Aayog, the Department for Promotion of Industry and Internal Trade (DPIIT), and other relevant departments, were present to provide their insights. The objective of the meeting was to formulate a comprehensive strategy to mitigate any adverse effects on India’s economy and to strengthen India’s trade relations with the US in light of the new tariff measures.
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