Focus on early India-US trade pact in talks between Rubio and Jaishankar
DAYS BEFORE the 26 per cent reciprocal tariffs imposed on India by the President Donald Trump-led US administration come into effect, External Affairs Minister S Jaishankar spoke to US Secretary of State Marco Rubio on Monday. The two sides “agreed on the importance of the early conclusion of the Bilateral Trade Agreement”.
India and the US started negotiations on the trade deal after Prime Minister Narendra Modi met Trump in Washington DC in mid-February.
“Good to speak with @SecRubio today. Exchanged perspectives on the Indo-Pacific, the Indian sub-continent, Europe, Middle East/West Asia and the Caribbean… Agreed on the importance of the early conclusion of the Bilateral Trade Agreement. Look forward to remaining in touch,” Jaishankar posted on X after the phone conversation.
Last week, contrary to Delhi’s expectations that India may be spared, the US announced reciprocal tariffs. While the 10 per cent baseline tariffs for all countries came into effect from April 5, the 26 per cent reciprocal tariffs kick in on April 9.
Sources said the idea behind Jaishankar’s conversation with Rubio was to convey the impact of such actions on India.
The tariffs on India were, however, lower than the 34 per cent imposed on China, 46 per cent on Vietnam, 36 per cent on Thailand, and 32 per cent on Indonesia — countries that have received significant investment from China and are increasingly integrating with the Chinese supply chain.
Last week, the Ministry of Commerce and Industry had said that it is examining the implications of Trump’s announcements and is engaged with all stakeholders, including Indian industry and exporters, to assess the situation and identify opportunities that may arise due to this new development in US trade policy.
“The US President issued an executive order on reciprocal tariffs, imposing additional ad valorem duties ranging from 10 per cent to 50 per cent on imports from all trading partners. The baseline duty of 10 per cent will be effective from April 5, 2025, and the remaining country-specific additional ad valorem duty will take effect from April 9, 2025,” the ministry had said.
Discussions are ongoing between the Indian and US trade teams for the swift conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement, the ministry had said. These discussions cover a wide range of issues of mutual interest, including the deepening of supply chain integration, and are focused on enabling both countries to expand trade, investment and technology transfers, it had said.
“We remain in touch with the Trump administration on these issues and expect to make progress in the coming days,” the ministry had said.
