Hours after US President Donald Trump claimed that India had agreed to cut tariffs "way down", government sources on Saturday claimed that the negotiations for a trade deal had just begun and it would be premature to talk about its details.
In February, both India and the US announced that they had agreed to negotiate the first tranche of a mutually beneficial multi-sector Bilateral Trade Agreement (BTA) by the Fall of 2025.
Both Trump and Prime Minister Narendra Modi agreed to designate senior representatives to advance the negotiations. "These officers were to work towards increasing market access, reducing tariff and non-tariff barriers and deepening supply chain integration," said sources in the Ministry of External Affairs.
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Accordingly, an Indian delegation led by Commerce and Industry Minister Piyush Goyal visited Washington on March 3-6. The team engaged the US Commerce Secretary, the US Trade Representative and their teams.
Sources said that the discussions on tariffs and other aspects of trade that were highlighted during PM Modi’s US visit are an ongoing process.
"Obviously, there are specifics which have been mentioned on various issues as part of the negotiation. It is also natural that both countries have their interests and sensitivities. These are legitimate matters for a discussion," they said.
The sources noted that during the first Trump administration, discussions had taken place about a limited trade deal between the two nations. It did not produce an outcome for various reasons.
"Since the discussions have just begun, it would be premature to talk about its details. There is also a context for each dimension, that would reflect the interests of both sides," they said in an apparent reference to Trump's claim that India agreed to bring down tariffs.
"India charges us massive tariffs, you can't even sell anything in India, it's almost restrictive...By the way, they have agreed to cut their tariffs way down now because somebody is finally exposing them for what they have done," the US president told reporters in the White House on Friday.
Earlier this week, Trump had announced reciprocal tariffs on its partners and other nations that impose higher levies on imports from the US.
