Commerce & Industry Minister Piyush Goyal and US Trade Representative Jamieson Greer’s meeting in Washington DC last week was productive and the two sides are continuing to engage on reciprocal tariffs, America First Trade Policy and market access expansion under the proposed bilateral trade agreement, the USTR office has indicated.
“Ambassador Jamieson Greer had a productive meeting with the Indian Minister of Commerce and Industry Piyush Goyal during his recent trip to the US. They have since continued to have engaging conversations on reciprocal trade, expanding market access, and President Trump’s America First Trade Policy,” the USTR office posted on social media platform `X’ on Thursday.
Goyal, too, posted on `X’ on Friday on the meeting with Greer on the BTA and said the country’s approach will be guided by `India First’ and the comprehensive strategic partnership between India and the US.
“Had a forward-looking discussion with US Trade Representative Jamieson Greer on a mutually beneficial Bilateral Trade Agreement. Our approach will be guided by ‘India First’, ‘Viksit Bharat’ and our Comprehensive Strategic Partnership,’ Goyal said.
Trump tariff
US President Donald Trump has threatened countries, including India, that have high import tariffs on US goods with reciprocal tariffs that are scheduled to be announced on April 2.
India is trying to improve its market opening offers for the US as part of the BTA being negotiated to avoid the reciprocal tariffs, but it has its sensitivities to protect including agriculture and dairy.
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While there was no official communication from either side for about a week after the meeting between Goyal and Greer, the USTR’s stress on reciprocal trade and America First Trade Policy and Goyal’s on `India First’ approach in the recent posts indicate that both sides are keen to protect their own interests.
Trump and Prime Minister Narendra Modi agreed to establish “new, fair-trade terms” to work out an India-US BTA that could more than double bilateral trade to $500 billion. The first tranche is set to be finalised by fall this year.
Pressure on India
The US President and US Commerce Secretary Howard Lutnick have been openly putting pressure on India to commit to stiff tariff cuts across the board since Goyal’s meetings with his counterparts last week. “They have agreed, by the way; they want to cut their tariffs way down now because somebody is finally exposing them for what they have done…,” Trump said last Friday.
India’s tariffs on US goods are at a much higher 15.30 per cent (2022) than US tariffs on Indian products at around 3.83 per cent. On agriculture, India applies a higher average tariff of 39 per cent to protect its vulnerable farmers. Lutnick has insisted that agriculture must also be on the table.
The US was India’s largest trading partner in FY24 with exports worth $77.51 billion and imports worth $42.19 billion.
