After US President Donald Trump introduced a 25% tariff and an unspecified penalty on Indian imports, former Commerce Minister Suresh Prabhu known as for a return to balanced negotiations and cautioned in opposition to focusing on India’s rural spine in commerce talks. “In India, Dairying Agriculture are livelihoods for over 600 million poor, nearly double the dimensions of US whole inhabitants,” Prabhu wrote on X. “A deal should improve strengths of every economic system and never exploit the inherent weaknesses.”
Trump’s announcement, which takes impact from August 1, instantly hyperlinks the tariffs to India’s continued defence and vitality ties with Russia. “India will subsequently be paying a tariff of 25%, plus a penalty for the above, beginning on August first,” he mentioned. He additional accused India of sustaining “strenuous and obnoxious non-monetary commerce obstacles” and claimed Indian tariffs have been “among the many highest on the earth.”
Prabhu, who served as commerce minister in the course of the first Modi administration and was instantly concerned in commerce discussions with Trump’s earlier time period, harassed the necessity for a framework rooted in shared values.
“I Want USA & India come again to negotiations to strike mutually useful commerce deal. Each nations at all times rightly speak about our shared values, thus want a commerce framework Commerce Deal to strengthen these fundamentals,” he wrote. “As commerce minister in Modi-1 handled Trump-1. I’ve full confidence @PMOIndia @narendramodi will defend our nationwide pursuits.”
India has resisted U.S. calls for for responsibility concessions in delicate sectors like agriculture and dairy —particularly for genetically modified crops and U.S.-origin dairy merchandise. No such concessions have been granted in any previous free commerce settlement. India is as an alternative searching for rollback of the 26% further tariffs imposed by the U.S., together with reduction from excessive duties on metal and aluminium (almost 50%) and vehicles (25%).
In return, India is searching for expanded market entry in labour-intensive sectors like clothes, textiles, leather-based, gems and jewelry, plastics, chemical compounds, shrimp, oilseeds, grapes, and bananas. The U.S. negotiating place stays targeted on securing entry for industrial items, electrical autos, wines, petrochemicals, and a broad vary of agricultural and dairy gadgets.
The Ministry of Commerce issued a proper response following Trump’s tariff declaration. “The Authorities has taken notice of a press release by the US President on bilateral commerce. The Authorities is finding out its implications. India and the US have been engaged in negotiations on concluding a good, balanced and mutually useful bilateral commerce settlement over the previous few months. We stay dedicated to that goal,” the ministry mentioned.
It added, “The Authorities attaches the utmost significance to defending and selling the welfare of our farmers, entrepreneurs, and MSMEs. The Authorities will take all steps essential to safe our nationwide curiosity, as has been the case with different commerce agreements together with the most recent Complete Financial and Commerce Settlement with the UK.”
