reciprocal tariffs

India and the US concluded three days of trade talks in Washington, aiming to finalize an interim trade pact and advance negotiations for a broader bilateral agreement. Discussions covered market access, digital commerce, and economic security.

Under the proposed interim trade deal, the US has lowered tariffs on India from 50% to 18%. In August last year, Trump had imposed a 25% reciprocal tariff on India and an additional 25% penal tariff for India’s crude oil purchases from Russia.

Exporters and end consumers are not permitted to file claims directly, although some companies, such as FedEx, may opt to pass on the refunded amounts at their discretion.

India and the United States are nearing a bilateral trade agreement, with negotiators meeting in Washington this week to finalize the first phase. Officials indicate only a few issues remain unresolved, building on a framework announced in February. This renewed push aims to enhance market access and secure preferential treatment for India.

India and the US are resuming trade negotiations in Washington DC from April 20-22 to discuss the first phase of their bilateral trade agreement. The talks are being held under a revised framework following recent shifts in the US tariff regime, which have reduced India's previous trade advantages and necessitate recalibration of the agreement.

India and the US are nearing a bilateral trade agreement, with negotiators reporting significant progress and only a few issues remaining. Discussions are described as positive and productive, focusing on market access and tariff alignment. This potential deal, aimed at boosting trade between the two nations, is expected to be a win-win, marking a key milestone in economic ties.

India and the United States will resume trade talks next week in Washington. A delegation of Indian officials will meet their US counterparts. Discussions will focus on the first phase of a proposed bilateral trade agreement. Recent changes in US tariff policy necessitate a review of the earlier finalized trade structure.

The agreement had originally been expected to be signed in March, but developments in the Donald Trump tariff regime following a ruling by the Supreme Court of the United States have changed the circumstances.

Trump is attempting to rebuild his tariff regime using alternative legal avenues after the court ruled that his earlier reliance on emergency powers to impose duties was unconstitutional.

The US has imposed up to 100% tariffs on patented drugs and certain metals, aiming to boost domestic manufacturing. While India's generic drug exports are largely exempt, firms producing branded medicines or inputs for patented drugs may face pressure. Developed nations are expected to bear the brunt of these new measures.

The World Trade Organization's ministerial meeting in Cameroon will focus on reforming the 30-year-old body. The US and EU aim to expand talks to new issues and recognize plurilateral agreements, while India will advocate for farm trade reforms and preserve the WTO's core principles, prioritizing small farmers and policy space for developing economies.

What does this latest disruption mean for the growth prospects of Asian economies that are in large part dependent on oil and energy imports. Since the start of the Middle East conflict, passage of ships through the Strait of Hormuz has been curtailed.

The economies included in the investigation are China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India.

As Trump announced the reciprocal tariffs, he explained that for purposes of fairness, the United States will impose the same tariff on each country whatever they charge, not more, not less. "They charge us a tax or tariff and we charge them the exact tax or tariff. Very simple," Trump said.

President Trump expressed deep disappointment and shame over the Supreme Court's ruling deeming his reciprocal tariffs illegal. He accused the court of being swayed by foreign interests and a small political movement, calling some justices "fools and lapdogs" for their perceived disloyalty to the constitution. This decision significantly impacts the President's trade war strategy.

Trump had recently removed the 50% tariffs that he had imposed on India, bringing it down to 18%. An India-US joint statement on the same was issued earlier this month and an Indian delegation is travelling to the US in the coming days to finalise the interim trade deal.