Trade tensions between the United States and India are heating up again as President Donald Trump took aim at India’s high tariffs, signaling that ongoing negotiations may not lead to significant concessions for New Delhi. With reciprocal tariffs set to kick in on April 2, negotiations don’t seem to be leaning in India’s favor.
But, India’s not just sitting back. In an effort to ease tensions, it has already slashed tariffs on selected products, including bourbon whiskey. Meanwhile, Commerce Minister Piyush Goyal also arrived in the U.S. on Monday to meet with Jamieson Greer, the new U.S. Trade Representative. Greer, a key player in Trump’s first administration, was heavily involved in trade actions against China, which ironically opened up some export opportunities for India—especially in electronics.
Despite that, according to a recent report from Moody’s, India could face significant consequences due to the wide rate differentials between their tariffs and U.S. tariffs. While India’s overall exposure is lower than some of its neighbors, industries like food, textiles, and pharmaceuticals could feel the pinch.
The good news? Some insiders believe India might dodge the worst of Trump’s proposed tariffs, thanks to ongoing negotiations. A source familiar with the talks says both sides are working towards a deal, with India looking to secure the first phase of a trade agreement by fall.
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