Trump Actively Negotiating India Trade Deal After Hiking Tariff: Report

US President Donald Trump's latest tariff policy has sparked fear among the Indian exporters. With duties raised to 26% on exports from India in addition to a baseline tariff of 10%, domestic sellers fear this could impact their sales abroad. However, a solution may be around the corner with the Indian and US officials negotiating a trade deal before the tariffs come into force, suggest media reports.

Trump is "actively negotiating" trade deals with India, Vietnam, and Israel, CNN cited a senior adviser to the US president told CNN.

The 10% base tariff will be effective from today while a flat 26% country-specific duty for India will come into force from next Wednesday (April 9).

The Indian government has said it is "carefully examining" the implications of the tariffs announced by Trump on April 2, and that the Commerce Ministry is assessing the situation along with all stakeholders. Feedback is being taken from exporters and the department is also studying the opportunities that may arise due to the tariff changes.

Trump has billed the increased duties as "Liberation Day" tariffs that seek to stop foreign sellers from "ripping off" the US industries.

The US President, who has repeatedly called India one of the "highest tariffing nations", used a mild tone while announcing the tariffs for New Delhi, calling Prime Minister Narendra Modi a "good friend". But he recalled telling the Indian leader when he visited the US in February that New Delhi was "not treating us right". The White House said Indian tariffs made it costly for American companies to sell their products in India - which, if removed, would increase US exports by at least $5.3 billion annually.

Experts fear the increased tariff would impact electronic exports worth nearly $14 billion and gems and jewellery worth $9 billion. Auto components and aluminum exports will also feel the brunt of the 25% duty announced earlier on these products.

The government, however, is trying to resolve it through dialogue with the Trump administration - with an eye on doubling bilateral trade to $500 billion by 2030, as was announced after PM Modi's US visit.

Indian and US teams are trying to expedite a multi-sectoral bilateral trade agreement (BTA) that is mutually beneficial, India's commerce ministry said a day after the US trade policy was announced. The trade deal will cover a range of issues of mutual interest that include deepening supply chain integration.

Indian officials are in touch with the Trump administration, the government said, adding that their talks are focused on increasing trade, investments, and technology transfers.