India Plans Formal Talks After Dodging First US Tariff Salvo

After backchannel talks helped India stay out of the Trump administration's first list of tariffs, the government plans to initiate formal talks with the US to address disputes around trade, according to three people aware of the matter.

- Dhirendra Kumar

Indian policymakers believe that the country remains vulnerable to future tariff hikes, making formal negotiations with the US Trade Representative (USTR) office crucial to securing an exemption, the people said, speaking on the condition of anonymity.

India, which has a $35-billion trade surplus with the US, escaped tariffs in the first round even as Trump imposed a 25% duty on Mexico and Canada (10% on Canadian energy). While Canada slapped counter-tariffs, Mexico on Monday reached a deal with the US to delay tariffs by a month. Trump also increased tariffs on Chinese imports by 10%.

New Delhi is preparing a list of goods to present to the US administration to highlight their impact on American exporters, said the first of the three people cited earlier. It's aimed at reinforcing the argument that imposing tariffs on Indian products could also hurt US businesses, this person said.