India Eyes Quick US Trade Deal After Trump Suspends Tariffs On Key Allies For 90 Days: Report
India and US had agreed in February to begin work on the first phase of a trade pact, aiming to finalise it by the end of the year and boost bilateral trade to $500 billion by 2030.
After President Donald Trump announced to suspend reciprocal tariffs for several countries while significantly increasing duties on Chinese imports, India has expressed its eagerness to fast-track a trade agreement with the United States, a government official said on Thursday.
The two nations had agreed in February to begin work on the first phase of a trade pact, aiming to finalise it by the end of the year and boost bilateral trade to $500 billion by 2030. "India is one of the first nations to start talks over a deal with the United States and to have jointly agreed to a deadline to conclude it," said the official, news agency Reuters reported.
Meanwhile, the trade ministry of India, which is spearheading the negotiations, has yet to respond to the e-mail seeking comment.
Earlier this week, the Indian trade minister spoke at an event in New Delhi that manufacturers in both India and the U.S. have long been impacted by China’s unfair trade practices. The official also noted that India will increase vigilance on imports to detect potential dumping, including from Chinese sources.
Donald Trump Rolled Back Tariffs
On Wednesday, Trump rolled back tariffs for several US trading partners, including India, just a day after imposing steep levies that triggered the biggest market turbulence since the onset of the COVID-19 pandemic.
Refocusing his trade offensive solely on China, Trump announced an increase in tariffs on Chinese imports to 125 per cent. Meanwhile, the reciprocal tariff rate on Indian goods remains at 10 per cent.
The suspension of further tariffs comes as a significant relief for Indian shrimp exporters, who had been facing a competitive disadvantage compared to rivals like Ecuador, an Indian official noted.
Electronics worth nearly $14 billion and gems and jewellery valued at over $9 billion were also among the Indian exports affected by earlier US tariffs.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), which represents more than 37,000 exporters, said the 90-day tariff pause gives Indian negotiators a valuable window to finalise a bilateral trade agreement with the US.
"The US appears determined to hit China hard, and if it wants to ensure a non-disruptive supply of goods to its consumers while keeping inflation in check, India remains one of the most reliable suppliers," Sahai added.
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