Trump tariff ahead of India–US trade deal: Government cautious as experts weigh in on stalled negotiations
'The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications,' the Ministry of Commerce and Industry said in a statement.
'India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective.
The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements, including the latest Comprehensive Economic and Trade Agreement with the UK.'
The unravelling of the trade deal has come as a surprise to many, particularly given the momentum seen in bilateral discussions earlier this year. Experts point to a confluence of strategic, economic, and political factors that allegedly led to the impasse.
Nisha Biswal, Partner at the Asia Group and former US Assistant Secretary of State for South and Central Asia, noted that the breakdown was 'less about substance and more about tactics.'
'The US is using hardball tactics when there is an ambitious deal already on the table, which risks jeopardising all the substantial progress made in bilateral talks,' Biswal said. 'President Trump wanted to retain a minimum 20% baseline tariff on India—this was a non-starter for New Delhi.'
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