India Sees US as Reliable Trade Partner Despite Tariff Threats

India views the US as an outstanding and reliable trade partner, said Commerce and Industry Minister Piyush Goyal, despite Donald Trump's promise to increase tariffs on all imports. Goyal emphasized that India's tariff policies are aimed at protecting its domestic manufacturing industry from "indiscriminate imports" and "substandard but irrationally priced" products, particularly from China. He suggested that the best way to avoid such tariffs is through a free trade agreement (FTA), a proposal that has been met with a lukewarm response from the US.

Key Takeaways:

• India considers the US as a reliable trade partner, despite Trump's campaign promise of increasing tariffs by 20% on all imports.
• Goyal views Indian tariffs as a defensive measure against China's practices, meant to protect the domestic manufacturing industry.
• The Indian government has had excellent relations with three different US administrations under Modi: Obama, Trump, and Biden.
• India's tariff policies are aimed at "dumping products," "non-transparent and opaque pricing mechanisms," and "indiscriminate imports" that are often "substandard but irrationally priced."
• The Indian government has agreed to FTAs with the UAE, Australia, and European countries, with the last trade pact also having an in-built investment commitment.
• Goyal proposed that the US and India consider a bilateral agreement to overcome the constraints of the most favoured nation (MFN)-based tariff structure.

Statistics:

• Trump's promise to increase tariffs by 20% on all imports.
• 163%: the tariff imposed by the US on peanut farmers.
• 2.5-5%: the low duty rates applied to certain Indian products.
• 20%: the proposed increase in tariffs on all imports by the US.

Sources:

• "India Sees US as Reliable Trade Partner DespiteTariff Threats," by HT Digital Content Services (Hindustan Times), October 4 (no date provided).