Trump Sets Tariff Marker for Talks

"RECIPROCAL TARIFF LIMITS India's options in doing the bilateral trade negotiations and gives the US an additional leverage to extract some additional benefits under the proposed trade pact," acting president and distinguished professor at Council for Social Development Biswajit Dhar said.

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Trump's comments came hours after the US imposed additional 25% import duties on all major imports from Canada and Mexico, and put an additional 10% tariff on China. While Canada and China retaliated immediately, the US commerce secretary Howard Lutnick later sought to de-escalate the situation a bit by saying a deal was possible with both countries that would lead to lower tariffs "landing somewhere in the middle."

"On average the European Union, China, Brazil, India, Mexico and Canada and countless other nations charge us tremendously higher tariffs than we charge them...(on) April 2 reciprocal tariffs (will) kick in and whatever they tariff us, we will tariff them," Trump said in his first address to the Congress after assuming presidency.

If Trump's threats are carried out, reciprocal tariffs would come at a time when India prepares for negotiating the first tranche of the bilateral pact with the US. Goyal is slated to open a new channel of communication with the US' newly appointed trade officials during the ongoing visit and a meeting with the US Trade Representative Jamieson Lee Greer is likely soon.