New Delhi: The negotiations between India and the US are “still evolving” and it is too early to comment, Foreign Secretary Vikram Misri said Saturday, after President Donald J. Trump claimed that New Delhi had agreed to cut tariffs a day earlier.
“I know there is a lot of interest in the statements coming out of the United States. I would not get into that at this point in time because these are ongoing discussions, so it would not be right to get into. I would only point to that we have in recent times entered into bilateral trade agreements which are based on tariff liberalisation with several partners…I think the ongoing discussions should be seen in that context,” Misri said at a special briefing.
Trump claimed Friday that India has finally agreed to cut tariffs because he has “finally exposed” New Delhi for its massive tariffs on goods. For the US President, India’s tariffs have been a sticking point, and he has raised it during a phone call with Prime Minister Narendra Modi, as well as during the latter’s visit to the White House last month.
From 3 March till 6 March, an Indian delegation led by Commerce Minister Piyush Goyal was in America to hold discussions on a bilateral trade deal with his US counterpart Howard Lutnick and the US Trade Representative Jamieson Greer.
“Discussions on tariffs and other aspects of trade that were highlighted during the Prime Minister’s visit to Washington DC are an ongoing process. Obviously, there are specifics which have been mentioned on various issues as part of the negotiation,” a person familiar with the matter said.
“It is also natural that both countries have their interests and sensitivities. These are legitimate matters for a discussion. It may be recalled that, during the first Trump administration, discussions also took place about a limited trade deal between the two nations. For various reasons, it did not produce an outcome.”
Trump has been taking on India on tariffs, specifically duties levied on American automobiles, which he has claimed is as high as 60 percent in some instances. Both Modi and Trump agreed to announce the first tranche of a multi-sectoral bilateral trade deal by autumn 2025.
“It would be recalled that India has reduced its average applied tariffs significantly for key developed countries like Australia, the UAE, Switzerland, and Norway for example, under recently concluded mutually beneficial bilateral trade agreements. Similar negotiations are currently underway with the EU and the UK, among other partners. The ongoing discussions with the US should be seen in this context,” the person familiar with the matter said.
It remains unclear whether the ongoing negotiations would help stave off Trump’s promise to impose reciprocal tariffs by 2 April. However, Lutnick, who participated in an event in New Delhi Friday, virtually pointed to an interest in Washington for a broad-based trade deal with India, which would see the reduction of tariffs on goods.
The US Secretary of Commerce also called on India to open up its agricultural sector for products from America, which remains a sensitive issue for policy-makers in New Delhi.
Trump is keen for the trade deficit with India to be reduced and has been urging New Delhi to also purchase American security platforms. India exported roughly $77 billion worth of goods to the US in 2023-2024, while importing around $42.1 billion worth of goods.
(Edited by Tony Rai)
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Those who do free trade with socialist India should receive Nobel prizes.