India and US Engage in Talks on Reciprocal Tariffs and Initial Phase of Trade Agreement

Amid Donald Trump's tariff threats, Commerce Minister Piyush Goyal recently engaged in a "forward-looking" discussion with US Trade Representative Jamieson Greer, aiming to strengthen a mutually beneficial bilateral trade agreement. Goyal highlighted that India’s strategy would be guided by the principles of “India First,” “Viksit Bharat,” and the country’s Comprehensive Strategic Partnership.

Goyal shared key takeaways from the meeting on his X timeline, emphasizing the dedication to enhancing trade relations. “Had a forward looking discussion with @USTradeRep Jamieson Greer on a mutually beneficial Bilateral Trade Agreement. Our approach will be guided by ‘India First’, ‘Viksit Bharat’ and our Comprehensive Strategic Partnership.”

Piyush Goyal meets US Trade Representative Jamieson Greer. (Photo: Piyush Goyal X)

Agreement on Bilateral Trade

Goyal's visit to the U.S. follows discussions between U.S. President Donald Trump and Prime Minister Narendra Modi, during which both leaders expressed their commitment to negotiating the initial phase of a comprehensive Bilateral Trade Agreement (BTA) by fall 2025. They also agreed to appoint senior representatives to lead these negotiations.

In their recent meeting, President Trump and PM Modi reaffirmed their commitment to expanding trade and investment, with the goal of fostering economic prosperity, strengthening national capabilities, promoting innovation, and enhancing supply chain resilience. A key outcome of their discussions was the launch of “Mission 500,” an ambitious initiative aimed at more than doubling bilateral trade to USD 500 billion by 2030.

Challenges 

During his second term, President Trump has reaffirmed the need for tariff reciprocity, stating that the US will impose tariffs equivalent to those levied by other countries, including India. The US has consistently expressed concerns over India’s high tariff rates, emphasizing that achieving fair trade would require strategic adjustments.

US Trade Secretary Howard Lutnick recently highlighted the prospect of negotiating a comprehensive trade agreement with India. Speaking at the India Today Conclave, he stressed that reaching a mutually beneficial solution would require mutual understanding and cooperation. Lutnick underscored the importance of evaluating the broader trade relationship rather than focusing solely on specific products.

Both nations remain committed to strengthening trade ties, with ongoing discussions playing a crucial role in shaping the future of India-US economic cooperation.

(This Article was originally published by Financial Express)