Trump tariffs, BTA talks on agenda, Goyal likely to meet stakeholders tomorrow

The bilateral trade agreement was part of joint statement by Prime Minister Narendra Modi and Donald Trump in February last month. (AFP photo)

Commerce minister Piyush Goyal is likely to hold his first meeting with key trade promotions organisations on March 13 after an almost week-long visit to the US .

In the meeting, to be held virtually, stakeholders are expected to seek clarity on the talks over the proposed trade deal and also discuss areas where India has room to retaliate if US President Donald Trump’s raises tariffs on Indian products from April 2, sources told Moneycontrol.

“Goyal will meet stakeholders and key lobbies such as the Engineering Export Promotion Council (EEPC) on US’s tariff policies and how will it impact domestic industries, and whether there is any for room for retaliation by India,” one of the sources said.

The consultations come amid Trump repeatedly targeting India  as a “tariff abuser”. He has been calling for lower duties on American goods, especially automobiles and farm products.

"Stakeholders will also mull and identify areas where India can spur exports amid trade uncertainties," a second source said.

Under its "Fair and Reciprocal Plan", to be implemented in April, the US is set to levy higher tariffs on countries that impose steeper duties on American goods.

“Some industry experts are expected to raise that if India should also increase import duties on certain US products given Trump’s reciprocal plan and also seek clarity on the areas where there is room to lower duties on Indian goods,” the source added.

This source said while India can explore lowering duties on automobiles and whisky, it can retaliate against US’s agriculture goods if Trump levies higher tariffs.

Since the US is yet to elaborate on its reciprocal plan, Goyal’s discussion with stakeholders will be based on possible areas where India could face higher tariffs.

Stakeholders are also expected to seek an update on the talks between India and US, so far, on the proposed bilateral trade agreement (BTA), especially with media reports saying that Washington wants New Delhi to eliminate import duties on cars through the deal.

India has also reportedly agreed to reduce tariffs on certain US imports, such as apples, walnuts and cranberries.