India banks on trade talks as Trump launches tariff drive

Trade negotiations are under way between the US and India to address bilateral concerns

- Rajeev Jayaswal & Rezaul H. Laskar

Indian officials held out hope of a softer blow for the country amidst a barrage of tariff threats from US President Donald Trump in his address to the Congress on Tuesday (Wednesday in India).

Pointing to trade negotiations currently underway between New Delhi and Washington, the officials, who spoke on condition of anonymity, said India may escape Trump's tariffs as both sides are actively engaged in constructive negotiations to address each other's concerns, including tariff and non-tariff barriers.

In his address, Trump again called out India along with Brazil, Canada, China, Mexico and the EU as the countries and regions that "charge us tremendously higher tariffs than we charge them", and reiterated his intent to subject them to reciprocal tariffs from 2 April.

Trump's remarks come at a time when Union Commerce Minister Piyush Goyal is on a nearly week-long visit to the US for the trade negotiations.

"The negotiations are on and we have agreed on having the first tranche of a mutually beneficial bilateral trade agreement by the fall of 2025," one of the people cited above said.

A second person added, "The Indian delegation will deliberate on trade matters on the lines of the joint statement finalised at the meeting between President Trump and Prime Minister Modi on 13 February. This visit is part of efforts to negotiate the first tranche of the bilateral trade agreement by the fall."

Goyal, who is in the US during 3-8 March, is expected to meet several top US officials and policymakers, including trade representative Jamieson Greer and commerce secretary ard Lutnick. "They are expected to discuss a roadmap for the bilateral trade agreement (BTA)," a third person said.