With 2 days left for Trump’s reciprocal tariff to kick in, no relief on sight for India: Report | Latest News India

With just two days left for President Donald Trump’s reciprocal tariffs to go into effect, India and the United States have agreed to finalise part of a bilateral trade deal before the year ends. However, neither side reportedly gave indications of any tariff exemptions for India.

India is set to face a new wave of punitive import from the United States levies starting April 2.

The two countries, which have been in the midst of trade talks this week in New Delhi, have been attempting to finalise its first leg of the trade deal by the fall of 2025, news agency AFP reported.

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This comes at a time when India prepares to potentially take a hit to its exports as the Trump administration’s tariff regime threatens to escalate tensions further.

Meanwhile, the US decision to impose a 25 per cent tariff on nations that purchase oil from Venezuela will also affect India, which has been a buyer of the Latin American country’s crude oil.

What have the US, India discussed?

New Delhi and Washington have “broadly come to an understanding on the next steps towards a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA), to finalise its first tranche by fall 2025,” India’s commerce ministry said in a statement late Saturday.

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Representatives from India and the United States have “exchanged views on deepening bilateral cooperation in priority areas including increasing market access, reducing tariff and non-tariff barriers and deepening supply chain integration”.

There was no suggestion in the statement however 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.

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Credit rating agency India Ratings and Research projects that the proposed tariffs could see the country’s exports to the US decline by up to $7.3 billion in the next fiscal year.

India’s response to Trump’s reciprocal tariff

India has over the last two months sought to reduce trade tensions with Washington by cutting tariffs on a few products, including high-end motorcycles and bourbon whiskey.

Before this week’s trade mission, Indian media reports had suggested the government might offer to scrap a levy on online services such as advertising.

The reports also said New Delhi was willing to cut tariffs on cars, electronics and medical services.

(with AFP inputs)