India Index founder and CEO Samir Kapadia discusses the advantages of President Donald Trump’s commerce cope with India on ‘Mornings with Maria.’
Secretary of Commerce Howard Lutnick, accompanied by U.S. Ambassador to India Sergio Gor, met his Indian counterpart in New Delhi Thursday. The assembly comes lower than every week after the Supreme Court docket struck down President Donald Trump’s sweeping international tariffs.
India’s Minister of Commerce and Trade Piyush Goyal hailed the talks as “very fruitful,” posting an image of the three officers smiling collectively. The assembly signaled renewed momentum, though India had been among the many first Asian nations to react to the court docket’s resolution.
Simply days earlier, New Delhi had postponed talks with Washington geared toward finalizing a commerce framework. Nonetheless, uncertainty lingers because the deal hangs within the steadiness. In a press assertion, India’s Ministry of Commerce and Trade stated, “We’re learning all these developments for his or her implications.”
Within the aftermath of the court docket’s ruling, the Trump administration launched a short lived 10% baseline tariff as a number of nations started to reassess their positions.
TRUMP RIPS SUPREME COURT TARIFF RULING IN SOTU, VOWS NEW LEGAL FIGHT AFTER 6-3 BLOW
“The Supreme Court docket verdict has created a trilemma for U.S. commerce companions, together with India,” Ajay Srivastava, founding father of the World Commerce Analysis Initiative, informed FOX Enterprise. “Everyone seems to be ready for extra readability.”
Earlier this month, the U.S. introduced a commerce framework easing reciprocal duties, bringing aid to Indian markets. Below that association, U.S. tariffs on Indian items had been set to fall to 18%, greater than the present 10% baseline. India had additionally agreed to buy $500 billion value of U.S. items over 5 years.
The deal was anticipated to take impact in April. However with the tariff panorama now modified, the South Asian big might stand to profit, and specialists say it might have gained leverage.
Commerce Secretary Howard Lutnick talks in regards to the Trump Gold Card as President Donald Trump appears to be like on throughout an govt order signing within the Oval Workplace of the White Home in Washington, D.C. (Fox Information/Pool / Fox Information)
“The brand new tariff is decrease than the negotiated price, and the uniform levy erases the aggressive benefit concessions had been meant to safe,” Srivastava stated. “There’s little rationale for providing tariff cuts, funding pledges or procurement commitments to Washington, particularly when similar entry to the U.S. market is out there even with out a deal.”
TRUMP TRIMS SOME TARIFFS AFTER SUPREME COURT LOSS BUT KEEPS TRADE FIGHT ALIVE
India’s purchases of Russian oil have additionally remained a sticking level. Within the unique commerce discussions, President Trump stated New Delhi had “dedicated to cease straight or not directly importing Russian Federation oil,” although Indian officers made no public point out of such a pledge.
India, the world’s third-largest oil importer and shopper, is predicted to see its purchases of Russian crude fall to a two-year low this month. Nonetheless, towards the backdrop of the court docket’s ruling, analysts say India will possible proceed to purchase Russian oil.
President Donald Trump speaks with the press as he meets with Indian Prime Minister Narendra Modi within the Oval Workplace of the White Home in Washington, D.C., Feb. 13, 2025. (Jim Watson/AFP through Getty Photographs / Getty Photographs)
President Trump has remained defiant by way of all of it, insisting his offers are safe. In a Reality Social put up following the Supreme Court docket’s resolution, he stated, “Any Nation that wishes to ‘play video games’ with the ridiculous Supreme Court docket resolution, particularly people who have ‘Ripped Off’ the united statesA. for years, and even a long time, shall be met with a a lot greater Tariff, and worse, than that which they only not too long ago agreed to. BUYER BEWARE!!!”
The White Home nonetheless has a number of authorized instruments at its disposal to pursue its financial agenda, together with different commerce authorities and reopening new commerce investigations.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Within the newest escalation with India, the administration imposed a 126% photo voltaic import obligation, suggesting that its “America First” coverage stays a precedence. The levies observe allegations that Indian corporations unfairly benefited from authorities subsidies and undercut American producers. In keeping with the U.S. Census Bureau commerce information, photo voltaic imports from the nation surged to almost $793 million in 2024, a roughly ninefold soar from 2022.
In keeping with the Workplace of america Commerce Consultant, whole U.S.-India commerce in items and providers reached roughly $212 billion in 2024, underscoring the dimensions of their financial relationship.
Items commerce alone accounted for about $129 billion, with the U.S. operating a $45.8 billion items commerce deficit with India, a niche that continues to form tariff negotiations between the 2 nations.
