US won't club India with China, Canada on tariffs

India will not be treated like China, Mexico and Canada, trade officials from the US have indicated to their counterparts in Delhi, where they held their first in-person meeting on Wednesday to negotiate a bilateral trade agreement — a process now put on "fast track," people aware of the matter said.

- Rajeev Jayaswal

The hectic parleys come against the backdrop of the looming April 2 deadline when the US is due to enforce reciprocal tariffs. Shortly after taking office on January 20, President Donald Trump resumed a trade war with China and opened two new ones with Canada and Mexico, effectively triggering disputes with the country's three largest trading partners.

"It is now amply clear that the Trump administration does not club India with countries like China, Mexico and Canada. There is a difference," said one of these officials with direct knowledge of the matter. "The US has serious issues with China, Mexico and Canada related to currency manipulations, illegal migration and other security concerns. But with India it has only tariff issue, that too both are resolving amicably," this person added.

The talks, formally named "India-US Fast Track Mechanism," began on Wednesday with the US team led by assistant trade representative Brendan Lynch and the Indian delegation headed by commerce ministry's additional secretary Rajesh Agarwal. They are expected to finalize the basic contours of a bilateral trade agreement (BTA) by Friday. The person cited above added that the discussions were "progressing in a cordial spirit and the gation headed by commerce ministry's additional secretary Rajesh Agarwal. They are expected to finalise the basic contours of a bilateral trade agreement (BTA) by Friday.

The person cited above added that the discussions were "progressing in a cordial spirit and the outcome is expected to be satisfying for both the governments".

"This (the outcome) could be factored in by the Trump administration before deciding reciprocal tariffs on India on April 2 deadline," this person said.