As US President Donald Trump put a hold on reciprocal tariffs for several countries, India wants to move quickly on a trade deal with the United States, news agency Reuters reported, citing an unnamed government official on Thursday.
In February, New Delhi and Washington agreed to work on the first phase of a trade deal to be concluded late this year, with a view to reaching two-way trade worth $500 billion by 2030.
“India is one of the first nations to start talks over a deal with the United States and to have jointly agreed to a deadline to conclude it,” Reuters quoted the official as saying.
Union commerce minister Piyush Goyal said at an event in New Delhi earlier this week that manufacturers in India and the US have suffered from China’s unfair trade practices over the years.
India will raise scrutiny on imports to spot any potential dumping of goods, including from China, the official said.
On Wednesday, Donald Trump temporarily lowered duties on trading partners, including India, just 24 hours after imposing tariffs that unleashed the most intense market volatility since the early days of the Covid-19 pandemic.
Shifting the focus back to a bilateral trade war with China, Trump said he would raise to 125% the tariff on imports from China. The US reciprocal tariff on India stands at 10%.
The decision to halt further tariffs is especially a relief for Indian shrimp exporters, the official said, citing an industry that faced a tariff disadvantage compared to competitors like Ecuador.
Nearly $14 billion worth of electronics products and over $9 billion worth of gems and jewellery were also among the sectors impacted by the U.S. tariffs.
Ajay Sahai, director general at the Federation of India Export Organisations, representing more than 37,000 exporters, said the 90-day pause gives Indian negotiators time to work on concluding a bilateral trade deal with the United States.
“The US appears determined to hit China hard, and if it wants to ensure a non-disruptive supply of goods to its consumers while keeping inflation in check, India remains one of the most reliable suppliers,” Sahai said.
China’s stock investors show faith in Beijing
Chinese stocks capped another day of gains on Thursday, defying the US President’s move to further hike tariffs on the nation to a record 125%. One key takeaway from that: investors are putting their trust in Beijing’s ability, and its resolve, to support the economy and markets in the face of an escalating trade war.
For now, authorities are sending all the right signals. China’s top leaders plan to meet to discuss additional economic stimulus, with the ad-hoc gathering set to focus on support measures for housing, consumer spending and technological innovation. That follows pledges from policymakers earlier in the week to “fight to the end” in response to Trump’s tariffs as well as efforts by state-backed funds to support the market.
A gauge of Chinese stocks listed in Hong Kong climbed 1.8%, capping a third daily advance, while the onshore benchmark CSI 300 Index finished 1.3% higher. That’s even as China was a glaring omission when Trump announced a 90-day pause on higher tariffs for most trading partners, just hours after his wide-ranging reciprocal tariffs took effect.
(With inputs from Reuters, Bloomberg)
