US reciprocal tariffs: The discussions between India and the US on tariffs have ended without any result. In such a situation, it is now certain that America’s reciprocal tariff will be imposed on India from April 2. Let us tell you that a US business team came to India to resolve the trade issue between the two countries, but their visit ended without any significant result.
Both countries have agreed to finalize some parts of a bilateral trade agreement by the end of this year. But neither side has given any indication of giving tariff exemption to India. US President Donald Trump spoke about imposing a trade tariff some time ago. This rule is going to come into effect from April 2. It also includes reciprocal tariffs against India.
Recently, US President Trump said that India imposes more tariffs on America. In this situation, he had said that America would also impose the same tariff on those countries, including India, as they do. Apart from this, India also has a trade surplus with the US. Due to these reasons, the Trump administration can impose retaliatory tariffs on India.
India’s Commerce Ministry stated on Saturday. It said that officials of both countries have negotiated a bilateral trade agreement (BTA). They have agreed on some points regarding this agreement. Their goal is to complete the first part of this agreement by 2025.
The two countries also talked about increasing mutual cooperation in certain areas. This includes increasing market access, reducing tariff and non-tariff barriers, and improving the supply chain. However, nothing has been said in this statement that any steps will be taken to remove these obstacles. The new tariffs that the US has said it will impose on its trading partners are going to start on Tuesday.
There is a credit rating agency named India Ratings and Research. They estimate that India’s exports could be reduced by $7.3 billion in the next financial year due to US tariffs.
India is the fifth largest economy in the world. In the last two months, India tried to reduce trade tensions with the US. For this, it has reduced tariffs on some products. These include expensive motorcycles and bourbon whiskey.
According to media reports, India is preparing to reduce the duty on imports of American goods. The government can eliminate the duty on online services. These services include things like advertising. Reports also said that India is ready to reduce tariffs on cars, electronics, and medical services.
America has decided to impose a 25 percent tariff on countries buying oil from Venezuela. This will also affect India because India has been buying crude oil from this Latin American country. Reliance Industries has stopped buying new oil from Venezuela. There is already a ban on Russian oil.
Also Read: Donald Trump: US is going to tariff the entire world!
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