Dairy sensitive for India, as peanut butter is to US, says official in the wake of tariff negotiations

“We have to be patient. Trade pacts do not happen overnight. It is a careful and steady process. Things are analysed carefully,” an official said on the condition of anonymity, adding that a slight impact on demand in the US could be a little challenging.

India has “emerged a winner” following the reciprocal tariffs imposed by the United States, officials said, pointing out that the country has a first mover advantage compared to its competitors owing to of the Bilateral Trade Agreement (BTA) that the two are negotiating and because Indian exporters are better positioned to deal with the additional US tariffs.

They said the country will take all measures within the World Trade Organization (WTO) framework to check dumping of goods from countries such as China which have been slapped with steeper tariffs. “The government is there to protect domestic industry from any possibility of dumping of goods in such a situation,” the official added.

While the US has imposed 26% reciprocal tariffs on India, it has levied 34% additional import duties on China. India is also likely to gain from the US-China trade war, according to officials.

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While certain exports such as fisheries could lose market share to Ecuador, which faces lower reciprocal tariffs, India can export more of the product to the European Union, they said.

Limited Impact Seen on Pharma Exports

India anticipates a small impact on its pharmaceutical exports due to the new US tariffs from the Trump administration. Washington could impose tariffs similar to what it has levied on steel imports.

India is negotiating a free trade agreement with the UK, with “very good” progress on talks, and there are similar requests from other countries including