No talks on averting reciprocal tariff with US as yet: Govt officials
The Indian government is currently focusing only on the terms of Bilateral Trade Agreements (BTA) with the US, and no talks have been held on ‘averting’ reciprocal tariff, a government source told TNIE.
“Reciprocal tariff is a US law and part of its broader international trade strategy, which will impact not just one country. So, we have not been talking with them on reciprocal tariff,” says a government official on the condition of anonymity.
The US has announced it will impose a reciprocal tariff beginning 2 April 2025 under which it will increase the tariff on countries which levy higher duties on exports from the US than duties levied by the US on their exports.
“Currently, they are conducting investigations on items and countries which may qualify for reciprocal tariff. The investigation is likely to end by 1 April, and a report will be submitted. So, after 1 April they may go ahead with the imposition of reciprocal tariff,” the source mentioned above said, adding that 2 April is not necessarily the day the US will impose the proposed higher tariffs.
The commerce ministry officials are also tightlipped on any request by the India government to defer the imposition of reciprocal tariff from 2 April.
A commerce ministry official told TNIE that the government is proactively engaging with the US, and discussing mutually beneficial issues which can increase the trade up from $200 billion currently to $500 billion.
“Now, if trade has to grow between the two countries -- we have to look at all our concerns, mutual concerns of both the countries, so that we can have a mutual contribution. That is a path which we are taking, which is a positive and progressive path,” said the official while responding to the question on the nature of talks held between the two countries so far.
He reiterated that there is a forward movement, things are moving in a positive zone, and we should see a positive outcome.
Meanwhile, quashing the speculation that no senior US officials met Indian Commerce Minister Piyush Goyal during his visit to the country from 4-6 March, commerce secretary Sunil Barthwal told media that the Indian minister met both US Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer. He also quashed the rumours that Goyal again visited the US for further talks.