FIEO says hopeful US will delay reciprocal tariff on India by few mos
This story was originally published at 15:15 IST on 11 March 2025
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NEW DELHI – The Federation of Indian Export Organisations is hopeful that the US will delay imposing reciprocal tariffs on India by a few months, at least until the first tranche of the proposed trade agreement is launched, its Director General Ajay Sahai said. India and the US have agreed to negotiate a multi-sectoral bilateral trade agreement and are aiming to launch its first tranche by the fall season.
FIEO is the apex trade promotion organisation set up by the Ministry of Commerce and Industry.
President Donald Trump has announced that the US will impose reciprocal tariffs on several countries, including India, from Apr. 2, based on the duty levied by them on American goods. The US' reciprocal tariffs on India may entail an average duty hike of at least 5% on Indian goods as US goods face a weighted average tariff of 7.7% in India, while Indian exports to the US face only a 2.8% average tariff currently.
Sahai said he expects the US to not impose reciprocal tariffs on India on Apr. 2 and that the Trump administration would wait till the fall of 2025. "Logically, they have agreed for a BTA (bilateral trade agreement). So, logically, reciprocal tariffs should not come on us. We are already engaged in discussions," Sahai said.
Commerce and Industry Minister Piyush Goyal will meet Indian exporters on Thursday, Sahai said. Considering the current global dynamic, India's trade relations with the US may be up for discussion, Sahai said.
India has been focusing on improving its trade relations with the US after President Trump's Republican Party won the elections. Trump has expressed displeasure over India's trade policies on several instances in the last few months. In his latest remark last week, Trump said that New Delhi was willing to cut tariffs massively after his government "exposed" India.
The US is India's top export destination, with a share of 17% in the total merchandise exports. In 2023-24 (Apr-Mar), India exported goods worth $77.52 billion to the US and had a trade surplus of $35.32 billion. End
US$1 = INR 87.18
Reported by Krity Ambey
Edited by Saji George Titus
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