US Tariffs: No Breather For India

New Delhi: Despite commitment showed by India and the United States to finalise part of a bilateral trade deal by this year, neither side came forward to offer any tariff exemptions. Hence, the reciprocal tariffs as proposed by US President Donald Trump will come into force from April 2. Credit rating agency India Ratings and Research (Ind-Ra) made a forecast that the proposed tariffs could see the India’s exports to the US decline by up to $7.3 billion in the next fiscal year.

Officials from both countries held trade talks in New Delhi last week covering several issues pertaining to reciprocal trade tariff regime, which includes punitive import levies against India, from April 2. However, there was no suggestion from either side that any action on those barriers would be taken ahead of Tuesday, when new US tariffs on its worldwide trade partners are slated to start.

India’s protectionist policies and its trade surplus with the United States leave it open to potential retaliatory tariffs from the Trump administration.

The reports also said New Delhi was willing to cut tariffs on cars, electronics and medical services. They had not however finalised terms of reference to clearly define the scope of a trade agreement, the report said.