India is actively working to safeguard its exports as the United States moves forward with reciprocal tariffs that could impact Indian trade, said Finance Minister Nirmala Sitharaman. She confirmed that Commerce Minister Piyush Goyal is currently in talks with the Trump administration to address the issue and protect India’s economic interests.
India’s Response to US Tariffs
Speaking at a post-budget event in Visakhapatnam, Sitharaman acknowledged the potential economic impact of the US-imposed tariffs and assured that India will make a decision based on the outcome of ongoing negotiations.
“Tariff is something the US President has been speaking about. The Commerce Minister (Piyush Goyal) has already gone to the US (to) engage with US officials, including the United States Trade Representative (USTR),” she stated.
She emphasized that India’s Commerce Ministry is handling the situation carefully to ensure the country’s exports remain competitive.
Trump’s Reciprocal Tariff Policy
US President Donald Trump has reiterated that reciprocal tariffs will be enforced from April 2 against countries that impose high taxes on US goods. This strategy is part of his effort to combat unfair trade practices, subsidies, and non-monetary trade barriers.
The policy is designed to:
- Encourage foreign countries to lower tariffs on US products
- Incentivize manufacturers to shift production to the United States
- Reduce trade imbalances and boost US economic growth
Global Market Impact
Trump’s tariffs have already disrupted financial markets, leading to reduced consumer confidence and uncertainty for businesses. Notably, the tariffs on Canada and Mexico resulted in a market downturn, forcing the US government to partially roll them back.
US Trade Deficit at Record High
Despite these trade measures, the US trade deficit has surged to a record $131.4 billion in January, marking a 34% increase. Analysts believe this spike is due to higher imports of gold and businesses stockpiling goods ahead of tariffs.
India’s Strategy Moving Forward
With US-India trade relations under strain, the Indian government remains hopeful for a resolution that could:
✔️ Exempt India from the tariffs
✔️ Lead to a broader trade agreement by fall
✔️ Strengthen diplomatic and economic ties
As discussions continue, India is closely monitoring developments and preparing contingency plans to mitigate potential disruptions to its export sector.
