While US President Donald Trump has announced a 25% high tariff on imported cars in the US, there is some good news for India. According to reports, the US will not categorize India with China, Mexico, and Canada and is considering a separate tariff category for the country. Meanwhile, trade talks between the US and India are progressing positively, with no obstacles in sight.
US-India Trade Talks on the Right Track
Sources in a report by Business Today revealed that Indian trade officials have informed their counterparts in Delhi that the US will not club India with China, Mexico, and Canada. They also stated that the new tariff structure might be phased out, potentially reducing tariffs on high-demand goods, providing significant relief to India in certain sectors. It is anticipated that these talks could finalize the outline of a new deal within three days, despite American officials urging for more concessions from India.
This is a relief for India, especially considering the recent tariff hikes imposed by Trump, starting with a 10% tariff on China, which was raised to 20%, and then a 25% tariff on Mexico and Canada on February 1. In retaliation, China, Canada, and Mexico also announced high tariffs on American goods.
India's Clean Focus on Tariff Issues
Reports suggest that bilateral trade agreement discussions have begun with US officials in a face-to-face meeting, notably before the April 2 deadline when Trump's reciprocal tariff on India takes effect. The Trump administration refrains from categorizing India alongside China, Mexico, and Canada due to different concerns with these countries, including currency manipulation and immigration issues, while with India, it's primarily a tariff issue being amicably resolved.
Relief from Reciprocal Tariffs?
According to a Business Today report, India has already indicated willingness to lower tariffs on certain US products, including EVs, automobiles, bikes, wines, and agricultural products from the US. Sources expect that ongoing negotiations and initial proposals may relieve some of the reciprocal tariffs imposed by President Trump starting next month.
Finance Minister to Visit US in April!
The 'India-US Fast Track Mechanism' themed discussions began on Wednesday and are hoped to conclude by Friday. Assistant Trade Representative Brendan Lynch is leading the US team, while Additional Secretary in the Ministry of Commerce, Rajesh Agarwal, spearheads the Indian delegation. Meanwhile, officials anticipate the discussion outcomes will be satisfactory for both nations.
It is also whispered that Finance Minister Nirmala Sitharaman's visit to the US in April 2025 might further advance the current discussions. In the meantime, it is essential to note that Prime Minister Narendra Modi and President Trump set a goal on February 13 to boost India-US bilateral trade from $200 billion to $500 billion by 2030.
