New Delhi:
India likes to do issues in a different way. Whereas the world has been struggling to get again on its toes after US President Donald Trump pulled the rug from beneath, along with his reciprocal tariffs announcement, some nations, like China and Canada retaliated shortly after, with tit-for-tat tariffs. Whereas China countered the US’ 34 per cent with the identical determine, Canada mirrored the US by saying a forty five per cent levy on the auto sector. A number of different nations reached out to Washington with a purpose to renegotiate its personal tariffs with a purpose to evade Trump’s reciprocal transfer.
India took a special route. It stated it is not going to retaliate to US’ 26 per cent tariff announcement, nor will it cut back the tariffs it already imposes on America. As an alternative, New Delhi reportedly plans to soak up, modify, and rework the buying and selling dynamic in a manner that President Trump’s reciprocal tariffs could have a minimal impression on Indian exporters. On the similar time, each nations are accelerating commerce talks to place in place a “win-win” commerce deal. Even earlier than Donald Trump introduced reciprocal tariffs, India positioned itself in an advantageous place by changing into one of many first nations to provoke a mega commerce pact with America.
JAISHANKAR-RUBIO PHONE CALL
On this regard, Exterior Affairs Minister S Jaishankar and US Secretary of State Marco Rubio spoke over a cellphone name on Monday. Each leaders agreed that an “early conclusion” of the bilateral commerce settlement will profit each nations. The 2 leaders additionally had an in depth dialogue on the scenario within the Indo-Pacific area and the Indian subcontinent.
Shortly after the talks, Dr Jaishankar stated that it was “Good to talk with Secretary Marco Rubio as we speak. Exchanged views on the Indo-Pacific, the Indian Sub-continent, Europe, Center East/West Asia and the Caribbean. Agreed on the significance of the early conclusion of the Bilateral Commerce Settlement. Look ahead to remaining in contact.”
Good to talk with @SecRubio as we speak.
Exchanged views on the Indo-Pacific, the Indian Sub-continent, Europe, Center East/West Asia and the Caribbean.
Agreed on the significance of the early conclusion of the Bilateral Commerce Settlement.
Look ahead to remaining in contact.…
— Dr. S. Jaishankar (@DrSJaishankar) April 7, 2025
In accordance with information company Reuters, an official within the authorities has stated that New Delhi has appeared right into a clause of Trump’s tariff order that provides a doable reprieve for buying and selling companions who “take vital steps to treatment non-reciprocal commerce preparations”.
One other official advised Reuters that India finds itself higher positioned than Asian friends like China, Vietnam, and Indonesia, which have been hit by larger US reciprocal tariffs. New Delhi and Washington have agreed to finalize an early commerce deal by autumn 2025 – one which will utterly resolve their variations on tariffs.
INDIA’S RECENT MOVES
New Delhi nonetheless, has signaled that since US’ reciprocal tariffs at the moment are imposed on India, the phrases of negotiations might be on equal footing, and Washington’s situations on removing of subsidies, particularly on pharma and agriculture, will now not apply.
However on the similar time, India has additionally taken a lot of steps to win over Trump, together with reducing tariffs on high-end bikes and bourbon whiskey, whereas additionally utterly dropping a tax it imposed on digital providers that affected US tech giants like Google, Microsoft, Meta, Amazon, and X, amongst others.
In the meantime, India’s Commerce Ministry is carefully assessing the fast impression of Trump’s tariffs with all stakeholders. It stated that suggestions is being taken from exporters, particularly these weak to be impacted most – like diamond retailers. The division, it stated, can be learning the alternatives which will come up from this tariff transfer.
ROBUST INDIA-US TIES
India and the USA take pleasure in a broad-based world strategic partnership masking practically each main area. The connection is pushed by shared democratic values, converging strategic pursuits, and dynamic people-to-people engagement. Excessive-level exchanges proceed to play a key position in advancing bilateral cooperation.
Each nations even have a sturdy financial partnership. New Delhi and Washington have set a goal to greater than double bilateral commerce to $500 billion by 2030 from the present over $190 billion.
Each nations additionally make investments closely in one another. Within the monetary 12 months 2023-24, the US was India’s third-largest supply of FDI, contributing USD 4.99 billion – round 9 per cent of complete fairness inflows. Indian firms are additionally making main investments within the US, with a 2023 CII research noting 163 Indian companies have invested over USD 40 billion, creating 425,000 direct American jobs.
(Inputs from Reuters)
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