Union Minister of Commerce and Industry Piyush Goyal is in Washington this week to meet for discussions on the BTA’s first phase. File
| Photo Credit: PTI
India did not respond on Wednesday (March 5, 2025) to U.S. President Donald Trump’s announcement that his administration planned to go ahead with reciprocal tariffs against India.
Mr. Trump’s speech came a day after Commerce and Industries Minister Piyush Goyal met his U.S. counterpart Commerce Secretary Howard Lutnick, and was due to meet U.S. Trade Representative Jamieson Greer for talks on the first phase of a Bilateral Trade Agreement (BTA) to be finalised later this year. The BTA was decided on during Prime Minister Narendra Modi’s visit to Washington on February 13.
India’s inclusion in the list of countries that would still face reciprocal tariffs after April 2 is believed to be a disappointment for those in the government who believed that Mr. Modi’s visit, and the promise of “fair-trade terms” in the BTA, could have postponed Mr. Trump’s decision. However, officials say there is still time for negotiation with the Trump administration.
Global responses
India’s silence on Wednesday (March 5, 2025) was in contrast to countries like China, Mexico, and Canada, which have already announced counter-reciprocal tariffs on U.S. goods. China and Canada have also filed complaints with the World Trade Organisation against the U.S. measures. While Brazil has not so far responded to the reciprocal tariffs, its President Lula da Silva had defied Mr. Trump’s threat over a further “100% tariffs” on BRICS countries last week, saying that such threats would not stop the emerging economies from seeking alternatives to U.S. dollar dominance, “no matter what”.
All eyes are now on the statements coming out of Mr. Goyal’s meetings in Washington this week on discussions for the BTA’s first phase. He and U.S. officials are believed to be looking at a number of areas where tariffs can be cut. Ahead of Mr. Modi’s visit last month, New Delhi had already announced tariff cuts on bourbon whiskey, wines, motorcycles, and electric vehicles.
‘Fair-trade terms’
According to the joint statement issued in February, India and the U.S. will target $500 billion in bilateral trade by 2030, more than doubling last year’s trade value of about $200 billion, by ensuring “fairness, national security and job creation”.
“Recognizing that this level of ambition would require new, fair-trade terms, the leaders announced plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall of 2025,” the statement had said, indicating an expectation of having a deal in place by September 2025.
Hailing the agreement last month, Mr. Goyal had said that the understanding Mr. Modi brought back with him had given the business community a lot of “confidence”, and a lot of “relief”.
Published – March 05, 2025 09:51 pm IST