India, Vietnam, Israel in talks to avert Trump tariff fallout, states report

At an event at the White House's Rose Garden on April 3 - dubbed “Liberation Day” by Trump - he declared a global tariff structure, holding up a chart that listed new US import levies.

Just two days after US President Donald Trump rolled out sweeping reciprocal tariffs on imports from several countries, nations including India, Vietnam, and Israel have reportedly initiated urgent negotiations with the US administration in a bid to secure exemptions or strike tailored trade deals.

Leaders from the affected economies are seeking bilateral talks with Trump, hoping to soften the impact of the broad tariff measures that threaten to disrupt global trade dynamics, it has been learnt from a CNN report.

As per a senior White House advisor, cited in the CNN report, Trump is open to “bespoke” trade agreements with countries that come to the table early, suggesting that India, Vietnam, and Israel are positioning themselves to be at the front of the line before the tariffs go into full effect starting May 3 - when a 25 percent levy on automobile parts is also scheduled to be enforced.

This has been further confirmed by a Moneycontrol report, which states that India is now engaged in behind-the-scenes negotiations for a list of items to secure tariff relief under Trump’s reciprocal tax plan. According to industry sources cited in the report, the two nations are working on a trade deal that will likely involve New Delhi lowering duties on select American agricultural products - such as almonds and pistachios - in exchange for US tariff relief on Indian exports like auto parts and pharmaceutical products.

“Trade teams of both nations are in touch to agree on a list of items to lower tariffs,” a source has been cited in the Moneycontrol report, who further added that these discussions were held during the last round of talks in Delhi from March 24-29, led by Assistant US Trade Representative Brendan Lynch. Trump, however, announced the 26 percent tariff imposition on Indian goods just days after these talks wrapped up in the national capital.

Another report by Reuters, citing a State Department readout, states that US Secretary of State Marco Rubio has discussed the tariff issue with Israeli Prime Minister Benjamin Netanyahu. As per Trump's new policy, unspecified Israeli exports to the US - its largest single trading partner - will now be subject to a 17 percent tariff.

Vietnam, on the other hand, slapped with a 46 percent US tariff, has moved quickly to de-escalate tensions. The Southeast asian nation, states a Bloomberg report, has slashed tariffs on American goods and offered gestures of goodwill.

Trump, in a post on Truth Social, stated that he had a "very productive call" with Vietnamese General Secretary To Lam, who signaled that the country is willing to slash its tariffs to zero in exchange for a bilateral trade agreement.

The talks with Israel, India, and Vietnam are also being seen as the first wave of diplomatic outreach following Trump’s announcement.

As per the Bloomberg report, other Southeast Asian countries, including Cambodia and Indonesia, are also responding diplomatically to Trump’s tit-for-tat tariffs and have chosen to negotiate rather than retaliate in a bid to maintain access to the US market.

Cambodia, it has been learnt from the report, facing the highest US tariff in Asia (49 percent), intends to slash its duties on US imports, while Indonesia, hit with a 32 percent tariff, is relaxing trade rules and sending a delegation to Washington. Singapore has ruled out retaliation altogether, further states the report.

At an event at the White House's Rose Garden on April 3 - dubbed “Liberation Day” by Trump - he declared a global tariff structure, holding up a chart that listed new US import levies. India, which Trump said imposes a 52 percent tariff on US goods, will now face a “discounted reciprocal tariff” of 26 percent, according to the new plan.

“India - very, very tough. The Prime Minister just left. He’s a great friend of mine, but I said, ‘You’re not treating us right.’ For decades, we charged them almost nothing,” Trump had remarked, adding that the trade disparity with India has persisted for too long.

Trump has often described India as the “tariff king” and reiterated this stance during a joint press conference with Prime Minister Narendra Modi on February 13 at the White House. At the time, Trump said India was "very strong on tariffs" and that selling into India was "very hard" due to trade barriers.

India, currently the tenth-largest exporter to the US with shipments worth $91 billion in 2024, views the US as both its largest export market and the fourth-biggest source of imports.

Meanwhile, on Friday, the S&P 500 plunged to an 11-month low, losing $5.4 trillion in market value over two sessions, after Fed Chair Jerome Powell warned that Trump’s tariffs would likely flare up inflation persistently. The index dropped 6 percent - its worst single-day performance since March 2020 - with nearly all stocks in the red. The Nasdaq 100 fell 6.1 percent, officially entering a bear market. Major tech stocks were hit hard, with Nvidia and Apple down over 7 percent and Tesla dropping 10 percent.