Amidst growing concern for tariffs by the US President, the Ministry of Commerce has assured that the imposition of tariffs on certain countries could open new avenues for India’s exports, positioning the nation to benefit from shifting global trade dynamics. Alongside, the Ministry confirmed that they are analysing the perspectives of various stakeholders to reap the maximum benefit from the Bilateral Trade Agreement (BTA) with the USA.
“The government is assessing all the impacts, which will come. Because there will be various impacts which will be coming, positive as well as negative. Suppose certain kinds of tariffs are imposed on certain countries, then obviously there may be certain opportunities. So, we are weighing both the opportunities as well as issues,” said Commerce Secretary Sunil Barthwal.
Concerns are mounting across various countries over the issue of reciprocal tariffs, as U.S. President Donald Trump has sharply criticized the high levies imposed by countries like India, calling them “very unfair.” In response, Trump announced that from April 2, reciprocal tariffs would be introduced on countries that tax American products. Trump administration has already announced a 25% tariff on all steel and aluminium imports, which has already sparked swift retaliation from both the European Union and Canada. Additionally, Trump has announced the implementation of a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff. The EU, in particular, has hit back with a 50% tariff on American whiskey, motorcycles, and motorboats, with further tariffs planned on poultry, soybeans, and other products.
Meanwhile, India is focusing on negotiating a Bilateral Trade Agreement with the United States, amid rising concerns about the potential impact of reciprocal tariffs. As part of its broader trade strategy, Commerce Minister Piyush Goyal has assured that the government is pursuing multiple avenues to safeguard the interests of exporters, with each initiative designed to ensure the country’s best trade interests are protected.
“Based on stakeholder presentations, we, in the negotiations, we are discussing those things and we will be resolving those things through bilateral negotiations,” added Barthwal.
In a recent meeting with various Indian exporters and Export Promotion Councils (EPCs), Commerce Minister Piyush Goyal urged exporters to move beyond their protectionist mindset to better navigate the challenges posed by global trade uncertainties. Alongside, the exporters have been asked to share their demands and interests with the government for better engagement with the US.
India's exports faced a fourth consecutive monthly decline in February, falling to USD 36.91 billion from USD 41.41 billion a year earlier. The fall has been primarily attributed to the fluctuations in petroleum prices and ongoing global trade volatility, exacerbated by concerns surrounding potential retaliatory tariffs from the Trump administration.
