2 months ago
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As 1 twelvemonth elapses of U.S. President Donald Trump’s ‘Liberation Day’ tariff announcement, Commerce Minister Piyush Goyal says India and the U.S. proceed to person a “very robust and deep” strategical concern and that India’s existent stance is that it should person preferential marketplace entree to the U.S. compared to its competitors, arsenic was agreed to successful the associated connection betwixt the 2 countries.
The ‘Liberation Day’ tariffs were announced connected April 2, 2025. Under these, Indian exports to the U.S. would person attracted a tariff of 26%. Over the past year, however, a batch has changed: the tariffs were paused, reinstated, hiked to 50%, reduced again to 25%, promised to beryllium reduced to 18% station a commercialized deal, invalidated by the U.S. Supreme Court, and past temporarily acceptable astatine 10% for each countries.
“India and the U.S. stock a precise robust and heavy strategical concern connected galore aspects specified arsenic technology, defence, trade, and investment,” Mr. Goyal told reporters connected Thursday (April 2, 2026). “India’s attack is that we should get preferential marketplace access, arsenic was agreed to successful the associated connection [in February 2026] arsenic compared to our competitors.”
He besides spoke astir his gathering with his counterpart from China, the archetypal specified gathering since India walked distant successful September 2019 from joining the Regional Comprehensive Economic Partnership (RCEP). Mr. Goyal said the gathering was a “good start” towards enhancing commercialized and concern betwixt the 2 countries.
Trade woody successful limbo
India and the U.S. connected February 13 issued a associated connection connected the model for an interim commercialized agreement. As per this statement, the U.S. was to trim tariffs connected India from 50% to 18%. However, a week later, the U.S. Supreme Court invalidated the mechanics done which Mr. Trump had imposed these tariffs.
Since then, Mr. Trump has imposed a impermanent 10% tariff connected imports from each its trading partners.
According to erstwhile Director General of Foreign Trade and laminitis of the think-tank Global Trade Research Institute Ajay Srivastava, the Supreme Court’s determination should promote India to revisit the deal.
“The February 20 ruling by the Supreme Court of the United States striking down reciprocal tariffs has removed the halfway leverage down these [trade] agreements, removing immoderate inducement for honoring commercialized deals connected earlier terms,” Mr. Srivastava said. “India should besides reassess its position.”
He further highlighted that the India-U.S. associated connection explicitly includes a proviso for a revisit of commitments if 1 broadside modifies its tariffs.
Sources successful the Ministry of Commerce and Industry said that the shot is presently successful the U.S.’ court.
“They are the ones nether the deadline, not us,” an authoritative explained, requesting anonymity owed to the sensitivity of the issue. “The 10% tariffs they person imposed were lone for six months. We are clear. If they yet get astatine a tariff strategy wherever we get preferential access, past we are acceptable to speech again regarding the commercialized deal.”
Other FTAs coming soon
Mr. Goyal besides said that New Zealand’s Minister for Trade Todd McClay volition beryllium visiting India successful the 4th week of April to motion an FTA. He besides said that helium was successful discussions with the authorities successful Oman to bring into effect the India-Oman Comprehensive Economic Partnership Agreement (CEPA) connected May 1, 2026.
Mr. Goyal said that helium and his counterpart successful Brazil person instructed their respective teams to “speed up” the process of expanding the existing preferential commercialized statement betwixt India and the MERCOSUR grouping of countries.
Commerce Secretary Rajesh Agrawal, besides speaking astatine the aforesaid event, told reporters that India and Chile person agreed to reason negotiations connected an FTA successful the “next fewer months”. Regarding the FTA negotiations with Peru, however, Mr. Agrawal said that the talks were “stuck owed to a mismatch of aspirations”.
