The Crossbill Team
Union Commerce and Industry Minister Piyush Goyal is expected to visit the United States again soon as trade tensions escalate following the Trump administration’s decision to impose sweeping reciprocal tariffs on Indian goods, set to take effect from April 2.
Goyal had visited the US last week for trade discussions, but Washington DC appears to have dismissed New Delhi’s initial offers on tariff reductions as inadequate.
The commerce ministry informed the Lok Sabha that it is now working on an improved proposal, which will be tabled in the next round of talks. A report in The Indian Express indicates that representatives from key sectors such as automobiles, textiles, leather, pharmaceuticals and electronics will provide input on potential tariff concessions.
According to businessline, the US is pushing for broader and deeper concessions, including agricultural trade to be brought into the negotiations. A report by the SBI Economic Research Department highlights the disparity in tariff structures, with India’s tariffs on US goods averaging 15.30% compared to the US levying 3.83% on Indian exports as of 2022.
The Modi government has been in damage control mode since Trump signaled his intent to impose reciprocal tariffs, frequently criticizing India’s “massive” duties on American goods.
Addressing the media from the Oval Office on March 7, Trump reiterated his stance, claiming that India had now agreed to significantly reduce tariffs, adding, “They want to cut their tariffs way down now because somebody’s finally exposing them for what they’ve done.”
His remarks have sparked fresh political controversy in India. The opposition Congress party questioned the government’s stance, with its media and publicity chief Pawan Khera accusing the Centre of compromising national interests.
"Has the government of India taken a decision to cut tariffs under pressure from Prime Minister Modi's close friend Donald Trump? Has Union minister Piyush Goyal, who is in the United States to apparently negotiate a trade deal, buckled under pressure and signed on the dotted line dictated by Howdy Modi's close compatriot, Namaste Trump?" Khera asked at a press conference, reported PTI.
Attacking the Modi government, Khera further questioned, "Why have you surrendered India's national and strategic interests? What was your minister Piyush Goyal doing in the US when President Trump announced that India has agreed to reduce tariffs? Isn't suffering reciprocal tariffs better than reducing own tariffs after reciprocal tariffs have been announced?”
Amid the uncertainty, the finance ministry is now expediting the rollout of incentives for MSME exporters, as announced in this year’s Union Budget under the export promotion mission. The scheme is expected to be implemented within a month to mitigate potential losses for small and medium exporters in the wake of the tariff dispute.
Goyal had visited the US last week for trade discussions, but Washington DC appears to have dismissed New Delhi’s initial offers on tariff reductions as inadequate.
The commerce ministry informed the Lok Sabha that it is now working on an improved proposal, which will be tabled in the next round of talks. A report in The Indian Express indicates that representatives from key sectors such as automobiles, textiles, leather, pharmaceuticals and electronics will provide input on potential tariff concessions.
According to businessline, the US is pushing for broader and deeper concessions, including agricultural trade to be brought into the negotiations. A report by the SBI Economic Research Department highlights the disparity in tariff structures, with India’s tariffs on US goods averaging 15.30% compared to the US levying 3.83% on Indian exports as of 2022.
The Modi government has been in damage control mode since Trump signaled his intent to impose reciprocal tariffs, frequently criticizing India’s “massive” duties on American goods.
Addressing the media from the Oval Office on March 7, Trump reiterated his stance, claiming that India had now agreed to significantly reduce tariffs, adding, “They want to cut their tariffs way down now because somebody’s finally exposing them for what they’ve done.”
His remarks have sparked fresh political controversy in India. The opposition Congress party questioned the government’s stance, with its media and publicity chief Pawan Khera accusing the Centre of compromising national interests.
"Has the government of India taken a decision to cut tariffs under pressure from Prime Minister Modi's close friend Donald Trump? Has Union minister Piyush Goyal, who is in the United States to apparently negotiate a trade deal, buckled under pressure and signed on the dotted line dictated by Howdy Modi's close compatriot, Namaste Trump?" Khera asked at a press conference, reported PTI.
Attacking the Modi government, Khera further questioned, "Why have you surrendered India's national and strategic interests? What was your minister Piyush Goyal doing in the US when President Trump announced that India has agreed to reduce tariffs? Isn't suffering reciprocal tariffs better than reducing own tariffs after reciprocal tariffs have been announced?”
Amid the uncertainty, the finance ministry is now expediting the rollout of incentives for MSME exporters, as announced in this year’s Union Budget under the export promotion mission. The scheme is expected to be implemented within a month to mitigate potential losses for small and medium exporters in the wake of the tariff dispute.
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