India Focuses on US Trade Deal, No Talks on Reciprocal Levies

India is focusing its US engagement on a bilateral trade deal rather than Washington's contentious plans to impose reciprocal tariffs.

- Dhirendra Kumar

According to three senior government officials, India is not engaging with the US on reciprocal tariffs; instead, discussions remain centered on shaping a proposed Bilateral Trade Agreement (BTA). The officials spoke after a high-level Indian delegation visited the US during 4-8 March to discuss the contours of the proposed BTA.

"We are adhering to the commitments outlined in the joint statement issued on 13 February for the proposed BTA, which is targeted for completion by the fall of 2025," said the first among the three officials mentioned above on the sidelines of the release of trade data on Monday.

India's focus on the BTA comes amid a lack of clarity about which countries the US plans to impose its reciprocal tariffs on. There is a legal process for levying reciprocal tariffs. The US is conducting an investigation and, based on its report, will consider imposing a reciprocal tariff on specific items.

Besides India, the US is also engaging with the UK for a trade agreement.