NEW DELHI: Amidst the upheaval in global trade caused by Donald Trump’s reciprocal tariffs and the downturn in stock markets worldwide, India and the US emphasised the importance of quickly concluding the Bilateral Trade Agreement (BTA) during a telephone conversation between External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio.
The phone conversation took place just ahead of the US imposing 26% reciprocal tariffs on India, along with varying rates for other countries, on April 9.
The two leaders also exchanged views of their mutual interests in a host of issues such as Indo-pacific, West Asia crisis and other regional issues.
“Exchanged perspectives on the Indo-Pacific, the Indian Sub-continent, Europe, Middle East/West Asia and the Caribbean. Agreed on the importance of the early conclusion of the Bilateral Trade Agreement. Look forward to remaining in touch,” Jaishankar said on X about the meeting.
The Trump administration has imposed a 26 per cent reciprocal tariff on Indian goods. While this rate is lower than the 34 percent tariff on China and the 46 percent tariff on Vietnam, it still places India at a disadvantage compared to some other Asian nations. India’s tariff rate is also higher than those of countries like Japan (24 percent), South Korea (25 percent), and Malaysia (24 percent).
India hasn’t resorted to any retaliatory measures, and maintained that they are assessing the situation. The Indian officials have long held that the Bilateral Trade Agreement being negotiated between the two countries would address all concerns regarding the tariffs, non-tariff trade barriers and issues of market access.
Once the reciprocal tariff is implemented, India’s exports to the United States could drop by $5.76 billion this year, due to higher American tariffs on a broad range of goods, according to an analysis by the Global Trade Research Initiative (GTRI). While some sectors may experience limited gains, the overall impact is expected to be negative, with most product categories facing adverse effects under the new duties. Starting April 9, the US will impose an additional 26% tariff on Indian goods, excluding pharmaceuticals, semiconductors, and certain energy items. A baseline tariff of 10% is being applied from April 5.