The US continues its series of aggressive tariff measures. Speaking of India, Donald Trump initially doubled the reciprocal tariffs from 25% to 50%, significantly hiking H1B Visa fees, delivering a substantial blow to India. Recently, the President announced a 100% tariff on pharmaceutical imports, which could severely impact India's drug exports. US Commerce Minister Howard Lutnick remarked that it's imperative for India to change its outlook amidst this tariff battle.
Essential for Better Access in the US
US Commerce Minister Howard Lutnick has included India among the major countries with whom the US aims to resolve ongoing trade disputes. In a television interview, he mentioned that India needs to change its perspective if it seeks better market access in the US. According to Lutnick, 'We must address issues with countries like Switzerland, Brazil, and India, which need to reciprocate adequately and open their markets to US products.' The US Minister further stated that these countries should refrain from actions that distance us and harm America.
Aligning with President Trump is Crucial
Lutnick further mentioned that several trade negotiations remain open, such as a significant agreement with Taiwan nearing completion. Some countries are yet to be addressed. He indicated that while large countries like India and Brazil are few, the trade issues will be resolved over time. However, these nations (India and Brazil) must understand that if they wish to sell goods to American consumers, they must align with the US President.
Update on India-US Trade Deal
Endorsing the double tariffs imposed on India by the US, Trump's Minister Lutnick stated that President Trump's initial deals are always the best, paving the way for even better deals subsequently. It should be noted that while the US initially applied a 25% tariff on India, an additional 25% was levied concerning Russian oil and arms purchases, bringing it to a total of 50%. Since then, the India-US trade deal remains unresolved.
However, following positive signals between the two nations, US negotiators recently visited India, engaging in discussions on various intricate issues. A delegation led by India’s Commerce and Industry Minister Piyush Goyal visited Washington from September 22 to 24. A statement from the Commerce Ministry indicated that positive meetings were held on various aspects of the India-US deal, resolving to continue discussions for a mutually beneficial trade agreement.
