TMTPOST -- India is reportedly seeking a trade agreement instead of retaliation in the face of U.S. President Donald Trump』s hefty tariffs this month.
Credit：U.S. Chamber of Commerce
The Indian government doesn』t plan to retaliate at this stage and is weighing options on concessions they can offer during trade negotiations to avoid a 50% tariffs that Trump decided to impose by the end of this month, Bloomberg cited people with knowledge of the matter on Thursday. It was said that New Delhi officials tend to pursue diplomatic and trade channels before considering countermeasures, with the goal to reach an agreement that preserves India』s strategic autonomy.
Trump on Wednesday signed an executive order imposing an additional 25% tariff on imports from India over Russian oil purchase. The new tariffs will enter into effect 21 days after announcement of the order, which will effectively raise tariffs imposed by the U.S. on Indian goods to 50% this month. New Delhi was reported to view the 21-day window before new tariffs come into effect on August 27 as an opportunity to keep negotiations with the U.S., and securing a potential trade deal is among its top options.
Indian officials are reportedly weighing whether some concessions, particularly in the agriculture and dairy sectors, could be offered to address U.S. demands while minimizing the impact on domestic producers. One proposal they are discussing involves allowing limited imports of genetically modified (GM) corn for non-human consumption, with strict traceability requirements, according to the report. The U.S. has been pressing India to allow for the import of American GM crops into the country and for duty-free imports on U.S. farm and dairy products, The Guardian cited Indian officials.
The 50% tariff rate is well above the 10% baseline tariffs that goods from most U.S. trading partners including India have charged since April. India became one of the countries facing the highest U.S. tariffs this month.
The Ministry of External Affairs (MEA) of India responded to Trump's threat with a statement reiterating that the targeting of India is"unfair, unjustified and unreasonable." 「We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India,」 the ministry said.
The MEA said It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. It repeated New Delhi』s pledge to 「take all actions necessary to protect its national interests.」
The MEA earlier this week has accused the U.S. of double standards in response to Trump』s threat of 「substantial」 tariff hike. The ministry said India』s energy imports aim to ensure predictable and affordable energy costs to the Indian consumer, so they are 「necessity compelled by global market situation」 , while the European Union and the U.S. trading with Russia despite their sanctions is taking place when it is not even a vital national compulsion.
Indian Prime Minister Narendra Modi on Thursday suggested that his country is ready for the costly consequences of the 50% tariffs, and will never trade interest of farmers for a deal to starve off Trump』s tariffs.
"I know I'll have to pay a heavy price, but I'm ready. India is ready," Modi said at a conference. "For us, the interest of our farmers is our top priority,」 said the prime minister. 「India will never compromise on the interests of farmers, fishermen and dairy farmers.」
Mallikarjun Kharge, president of the opposition Congress party, slammed the U.S. attempt to use tariffs to coerce India into shifting its trade and foreign policies. 「India』s national interest is supreme,」 said Kharge. 「Any nation that arbitrarily penalises India for our time-tested policy of strategic autonomy … doesn』t understand the steel frame India is made of.」
