According to Foreign Secretary Vikram Misri, Prime Minister Narendra Modi and US President Donald Trump have decided to start talks on reciprocal tariffs.
Foreign Secretary Vikram Misri announced on Friday that US President Donald Trump and Prime Minister Narendra Modi have decided to start talking about trade and tariff-related matters."We have indicated, and the two leaders have agreed today to start discussing trade and tariff-related issues," the Foreign Secretary said during a news briefing following a meeting between Modi and Trump in the White House.
Reciprocal tariffs are announced by Donald Trump.
Donald Trump declared retaliatory tariffs on nations, including India, just hours before his meeting with Narendra Modi. He declared that the US would impose tariffs on other nations in proportion to the amount of tariffs they impose on the US.
Governments place trade tariffs on imported goods in order to safeguard domestic industry and generate income.
"In terms of commerce, I have made the decision to impose reciprocal tariffs for the sake of equity; that is, we will charge other nations the same amount that the United States of America charges, neither more nor less. It's really easy: we will charge them the precise amount of taxes and tariffs that they charge us," Donald Trump stated on Thursday.
India and the US will start negotiating over tariff disputes.
"I will let those discussions start before pronouncing on what may happen with regard to the plans that have been announced today," Vikram Misri said on Friday in response to the Donald Trump administration's decision on trade tariffs.
"We charge them whatever India charges": Trump
Donald Trump stated that talks on tariff reductions during his prior terms had not produced any positive results for America after signing the memo titled "Fair and Reciprocal Plan" on Thursday.
Donald Trump emphasized that the United States is "being reciprocal with India" on trade duties, saying, "Whatever India charges, we charge them."
Therefore, to be honest, we don't really care what they charge anymore. In the first term, I spoke with India about their extremely high prices, but I was unable to obtain a concession," he continued.
"We have a way forward on this issue in terms of the undertaking to discuss or start discussions on a bilateral trading agreement, and this may actually be a very good opportunity to take forward something and conclude something which was actually foreseen in the first Trump administration," Misri said in response to the tension between the US and India over trade tariffs.
Imports from India to the US
India sells more goods and services to the United States than it imports, resulting in a trade surplus between the two countries. India's exports to the United States have grown dramatically in recent years. India's goods trade surplus grew from $17.30 billion in 2019–20 to $35.33 billion in 2023–24, per a report by The Indian Express.
Trump's tariff objectives
Trump has supported the use of tariffs to accomplish foreign policy and economic objectives. Trump has pledged to impose reciprocal tariffs depending on the disparity between U.S. and its trading partners' levies since taking office on January 20.
It is believed that the union budget plans on tariff reductions for motorcycles, notably Harley Davidson, are an attempt to allay the Trump administration's concerns about what it considers to be excessive tariffs imposed by countries like India.
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