India has not agreed to reduce trade tariffs on American goods, Commerce Secretary Sunil Barthwal has informed a Parliamentary panel. This statement counters the claim made by US President Donald Trump that New Delhi has promised to significantly lower import duties. Barthwal clarified that ongoing negotiations between India and the US have not yet resulted in a finalised trade agreement.
Barthwal emphasised that India's trade discussions with the US remain in progress and that no commitments have been made regarding tariff reductions. His remarks addressed concerns from several members of Parliament over Trump's recent assertion. Barthwal stated, "One cannot go by the US President's claims and on media reports as the bilateral trade agreement talks between the two nations are still on. India has not committed to anything on trade tariffs to the US."
The Commerce Secretary reiterated India's stance on trade, highlighting that the nation supports free trade and liberalisation to enhance bilateral commerce with the US. However, he also warned that an indiscriminate lowering of tariffs, especially in key domestic sectors, could adversely affect the economy, potentially triggering a recession. India prefers to negotiate tariff reductions bilaterally to ensure national interests are upheld.
India's approach contrasts with that of Canada and Mexico, which have challenged US tariff policies amidst security and immigration concerns. Barthwal underscored that India will pursue trade agreements that are "mutually beneficial" without compromising its economic priorities. This strategic positioning reflects India's broader trade policy goals.
President Trump, in his critique of global trade policies, labelled India's tariffs as "massive" and its trade practices as "restrictive." He claimed, "You can't sell anything into India, it is almost restrictive. 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." Reports suggest that India has sought time until September 2025 to address these issues with the US.
Amidst these developments, Trump has imposed reciprocal tariffs affecting multiple countries, including India, as part of his broader trade policy. Barthwal's statements aim to clarify India's position and reassure that the nation's interests will be safeguarded in any potential trade agreements. The outcome of these ongoing negotiations remains to be seen.