India possibly to ask for help from new partners over US tariffs
(MENAFN) India could explore alternative trade partnerships and strengthen ties with other countries due to the 26% tariff imposed by US President Donald Trump on imports from India, according to Ajay Dua, the former Secretary of the Indian Ministry of Commerce and Industry. In an interview with RT, Dua described Trump’s decision as harsher than expected, as many policymakers and exporters had hoped to be exempt from the tariffs during ongoing negotiations for a free trade agreement between the US and India.
Dua highlighted that the tariffs could negatively affect India’s export sector, especially since the country currently holds a $35-40 billion trade surplus with the US. He suggested that India may have to reconsider its position, possibly imposing retaliatory tariffs or negotiating an early harvest agreement to lower tariffs on certain items. India is also willing to reduce duties on some imports, such as crude oil and almonds, but it expects the US to reconsider its demand for India to remove protections for its agricultural sector, which is a sensitive issue due to the large proportion of the workforce dependent on it.
In terms of US-India diplomatic relations, Dua emphasized that New Delhi would prefer to resolve the trade issue peacefully to maintain the overall relationship. He also pointed out that India is willing to reduce import duties on items like almonds, pistachios, and apples, which it imports in large quantities, but that trade issues should not undermine cooperation in areas like defense, science, and technology.
Dua suggested that the current situation could lead India to reassess its trade alliances, possibly strengthening relationships with other Asian countries, including China. He noted that China is increasing trade with India in response to Trump’s tariff decision, and this could signal the start of a stronger ‘Asian powerhouse’ partnership. Recently, Chinese Ambassador Xu Feihong indicated that China is keen to enhance trade with India, import more Indian products, and encourage Indian businesses to explore opportunities in China.
Dua also mentioned that India has a trade agreement with Southeast Asian countries and might consider joining the Regional Comprehensive Economic Partnership (RCEP) to reduce tariffs and boost regional trade.
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