US President Donald Trump has set a critical deadline of April 2 for implementing reciprocal tariffs with India. This timeline raises questions about the feasibility of reaching a trade agreement within such a constrained period. The key figure in these negotiations, Commerce Secretary Howard Lutnick, has provided insights into the process.
Lutnick’s recent remarks come as India’s Commerce Minister Piyush Goyal engages in trade discussions in the United States. Reports indicate that the US is urging India to eliminate tariffs on nearly all goods except agricultural products, which could require India to relinquish significant trade protections without receiving any immediate concessions.
“India has some of the highest tariffs in the world, necessitating a reassessment of the trade relationship between India and the United States,” Lutnick stated.
Lutnick emphasized the importance of a macro approach to expedite tariff negotiations, proposing that focusing on individual products could prolong the process indefinitely.
“Considering the vastness of both India and the United States, a macro strategy is essential. We believe this can be achieved,” Lutnick explained.
Highlighting the Trump administration’s objectives, he mentioned, “The United States seeks a comprehensive trade agreement with India that encompasses all facets of trade, which I believe is within reach.”
Emphasizing the need for “big thinking,” Lutnick clarified that the goal is to enhance the India-US relationship through broad, inclusive agreements rather than a fragmented approach.
INDIAN GOVT, COMPANIES STRIVE TO ADDRESS TARIFFS
Reports indicate that the Indian government is considering reducing tariffs on crucial imports from the US, with numerous companies across various sectors collaborating with American partners to ensure business continuity.
Industries such as auto parts, consumer electronics, jewellery, and apparel are actively developing strategies to mitigate risks, according to recent analyses.
India may potentially lower or eliminate import duties on US agricultural products including walnuts, almonds, apples, and cranberries.
LUTNICK’S CONFIDENCE IN A SWIFT INDIA-US TRADE DEAL
Lutnick believes the potential for a swift Indo-American trade deal is bolstered by Prime Minister Narendra Modi’s “vision” and his strong rapport with Trump.
“Prime Minister Modi brings a unique vision to the table, especially given his solid relationship with President Trump, which was evident during our meetings,” Lutnick remarked.
His affection for India is noted, having shared his enthusiasm for Bollywood and Indian cuisine, and even referencing his experience with the Indian Premier League.
Lutnick assured that the US would welcome India into an “extraordinary trade partnership” if India takes steps to reduce its tariff barriers. Despite the tight timeline, he reiterated the necessity of a “macro” approach.
