India eyes swift trade pact with US amid higher tariff pressures on Asian rivals, no tit-for-tat planned

Subscribe to enjoy similar stories. New Delhi: US President Donald Trump’s tariff thunderbolt sent shockwaves across world capitals on Thursday, turning the clock back on globalization and raising fears of a tariff war.

For India, however, the strategy is to avoid countermeasures, tie up a trade deal swiftly, and explore opportunities once the dust settles. While the European Union is preparing retaliation, Japan is seeking exemptions and China has vowed countermeasures, India’s goal is to conclude a Bilateral Trade Agreement (BTA) with the US early, even as levies as high as 27% kick in next week, on top of existing tariffs.

With steelworkers and auto executives in attendance at the White House Rose Garden, Trump declared steep tariffs targeting friends and foes alike, the highest the US has seen in nearly a century. Starting at 10%, the so-called reciprocal tariffs soar to 54% in the case of China, igniting fears of a trade war that could redefine the world economy.

“Discussions between Indian and US trade teams are underway for a multi-sectoral Bilateral Trade Agreement (BTA) covering supply chain integration, investments and technology transfers," a commerce ministry statement said. While sectors such as engineering goods, seafood, agri-products, speciality chemicals and gems and jewellery are expected to face the brunt of the new tariffs, opportunities may open in others such as toys, textiles, leather and solar panels, while the pharma sector remains unaffected for now.

The IT sector, though not directly affected by the tariffs, is expected to face the heat as uncertainty prompts clients to defer discretionary spending. Meanwhile, losses raced through world markets: The S&P 500 Index tumbled 4% and the tech-heavy