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Context:
The Indian government denied making any commitment on a tariff reduction in the face of US President Donald Trump’s assertion. Discussions continue since India wants an extended time frame until September 2025 to negotiate the Bilateral Trade Agreement (BTA).
Selective Tariff Reductions Possible
- India may lower tariffs on select items, for example, nuts, but it will protect its dairy industry.
- Tariff concessions, where applicable, are restricted to the bilateral format, and in no way constitute an MFN concession.
India's Trade with the US is Different Than With Canada and Mexico
- Commerce Secretary Sunil Barthwal distinguishes that India’s trade and security ties with the US are distinct from those in the case of Canada and Mexico.
- Trade issues for India will, however, not concern immigration and national security effects as with its border sharing neighbors.
Challenges Against US Claims
- Trump’s Remarks (March 8, 2025)
- Trump said that India agreed to bring down tariffs while diplomatic talks were held.
- Trump claimed huge tariffs imposed by India restricted exports to that nation.
- Trump further stated that foreign goods tariff would be reciprocally applied by the US from April 2, 2025.
- Counter by the Indian Government
- India had received no official deadline from the US about any tariff reductions.
- Trade discussions have been held with focus on mutually beneficial ends immediate tariff cuts are not part of this.
Inputs Made to the Parliamentary Panel
- Commerce Secretary Sunil Barthwal and Foreign Secretary Vikram Misri briefed the 30 member panel, headed by Congress MP Shashi Tharoor.
- The subjects discussed included:
- India-US trade negotiations and tariff issues.
- Reports of China’s plans regarding a mega hydropower dam on the Brahmaputra River.
In its negotiations, India stands steadfast to pursue its terms, keeping in mind the protection of strategic sectors like dairy. Despite the pressure from the US, India would insist that tariff reductions would be bilaterally negotiated, and there is no confirmed deadline of April 2.
