India and US Accelerate Talks for Early Trade Deal Amid Trump’s Reciprocal Tariffs

On Monday, External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio held a conversation to discuss the next steps in the ongoing India-US Bilateral Trade Agreement (BTA) negotiations.

The call came shortly after US President Donald Trump announced significant tariffs on several countries, including India. The new tariffs will impose a 26% duty on all Indian imports to the US.

External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio. (Photo: X/S Jaishankar)

The initial 10% base rate was introduced on April 5, with the remaining 16% set to take effect on April 9. These changes have caused turbulence in global financial markets. In India, both the Sensex and Nifty indices fell by more than 3% during Monday's trading session.

EAM Jaishankar shared on X, "Good to speak with US Secretary of State Rubio today."

"(We) agreed on the importance of the early conclusion of the Bilateral Trade Agreement. (I) look forward to remaining in touch," he added.

Negotiations on the BTA are currently in progress, with the most recent round taking place in Delhi from March 26 to 29. During this session, trade officials from both countries reached an agreement on the main issues to guide future discussions.

India Awaits a Favorable Outcome

The recent tariff changes by the US have sparked significant concern among its trading partners. Trump announced a 10 percent base tariff on all imports, along with additional duties on certain countries, including some of the US's major allies. This move has created uncertainty in global trade and caused stock markets worldwide to fluctuate.

However, India has yet to respond with its own tariffs. Officials have suggested they are focused on completing the first phase of the BTA by the end of the year. A successful agreement could lead to the US reducing or eliminating the new tariffs.

If the deal is finalized, it may also result in greater access to American goods in Indian markets.

The Commerce Ministry previously stated it is closely monitoring the situation regarding the new US tariffs.

India May Lose Billions in Exports Due to High Tariffs

India’s exports to the US may drop by $5.76 billion this year if the full 26% tariff is implemented, according to a study by the Global Trade Research Initiative (GTRI). The additional duties will affect a wide range of Indian goods, with exceptions for pharmaceuticals, semiconductors, and select energy products.

A 10% tariff has already been enforced, with the remaining levies expected to follow soon.

(This Article was originally published by India Today)