A high-level US delegation is currently in Delhi for crucial trade talks. This twelve-member team is headed by Brendan Lynch, the Assistant Trade Representative for South and Central Asia, and will soon be bargaining with Indian officials. The discussions, which started Tuesday and will continue through Saturday, have more than 190 countries closely examining how to improve climate action. A more immediate crisis comes April 2nd, when President Donald Trump follows through on his stated intention of applying “reciprocal” tariffs on countries—starting with India.
The Trump administration has issued frequent and sharp upticks against India’s trade practices. They’ve even gone so far as to call the nation a “tariff king” and “big abuser.” India's average tariffs of around 12% significantly surpass the US's 2%, prompting President Trump to advocate for reciprocal tariffs that mirror those imposed by other countries on the US. For example, India recently agreed to drastically lower tariffs on exports of US-made bourbon whiskey and motorcycles. The trade deficit is nonetheless considerable, with Delhi enjoying a $45 billion trade surplus.
Clearing such obstacles to access is a priority for both nations. They have set a mutual deadline for negotiating the first phase of a trade agreement by fall of 2025. India promises to lower tariffs on at least 58 percent of US imports, covering over $23 billion. Such a step might go some way toward avoiding increasingly likely reciprocal measures from the US.
"This visit reflects the United States' continued commitment to advancing a productive and balanced trade relationship with India." – US Embassy statement
The discussions in Delhi are only one front in a deepening battle that began … Continue reading Negotiations. Shuttle ongoing negotiations have escalated since President Trump took office. For that reason, in March, Indian Trade Minister Piyush Goyal made a surprise visit to the US. He hosted the EPC’s preparatory talks to Indian Prime Minister Narendra Modi’s trip to Washington this past February. India’s junior commerce minister, Jitin Prasada, told members of parliament that negotiations were continuing with other countries. Towards this end, they are crafting a “multi-sector bilateral trade agreement” to improve access to their respective markets and lower tariff and non-tariff barriers.
The context to these negotiations is that the previous bilateral trade figure was $190 billion. At that moment, the US was India’s largest trading partner. In fact, Trump and Modi have both pledged to raise that amount significantly—to $500 billion.
"We may take less than what they're charging, because they've charged us so much, I don't think they could take it." – Donald Trump