Top trade officials from India and the US have broadly come to an understanding on the next steps towards a bilateral trade agreement (BTA), setting the pitch for sectoral expert level engagements that will start virtually in the coming weeks, according to the Commerce Department.
However, after four days of intense negotiations in Delhi between the two countries, no clarity emerged on whether the US would impose reciprocal tariffs on Indian products on April 2, as threatened by US President Donald Trump, or grant it a reprieve.
“In order to realise the shared objective of promoting growth that ensures fairness, national security and job creation, both sides have through four-days of discussions in New Delhi broadly come to an understanding on the next steps towards a mutually beneficial, multi-sector BTA, with the goal to finalise its first tranche by fall 2025,” a statement issued by the Commerce Department on Saturday noted.
The top officials’ meeting in New Delhi followed the visit of Commerce & Industry Minister Piyush Goyal to Washington, DC from March 4-6, where he met US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, and the subsequent video conferences between the two sides.
Lutnick said in an interview to an Indian media group that all items, including agricultural products, should be on the negotiating table for opening up of markets and flexible strategies, including setting quotas, could be adopted to address sensitivities.
When Trump assumed office as the US President for the second time earlier this year, he announced that all trading partners that have high tariffs, including India, must bring down their tariffs substantially or face reciprocal tariffs on April 2.
As Trump and Prime Minister Narendra Modi agreed last month to work on a BTA, India has been hoping that the US President would not yet take action on the reciprocal tariffs for India.
The Commerce Ministry statement on the talks between the teams from the US and India does not have any mention of the reciprocal tariffs.
“It seems that the US team did not brief the Indian team on the reciprocal tariffs. The announcement of reciprocal tariffs on India is likely to depend on whether Trump would be satisfied by the offers and indications given by India on tariff cuts. Things may get more clear in the days to come,” a source tracking the matter said.
India wants to be on favourable terms with the US as the country is its largest trade and export partner. In FY24, India exported goods worth $77.51 billion to the US and its imports were worth $42.19 billion.