India to wait and watch, speak at negotiating table, not retaliate on US tariffs
Assuring that the US tariff announcements being analysed are not a “cause for worry”, sources told CNBC-TV18 that India is unlikely to “jump the gun” before knowing any more details in a dynamic situation.
Sources said that there’s still no clarity on the penalties and associated duties till formal notifications are issued by the US government, adding that for now, the 6th round of negotiations is scheduled for 25th August, for the 1st tranche of a Bilateral trade agreement (BTA) between India and the US. Meanwhile, bilateral trade discussions are expected to continue in virtual mode.
Addressing both the houses of the Parliament, the Lok Sabha at 4 PM and the Rajya Sabha at 4:30 PM, India’s Commerce and Industry Minister said that the Ministry is engaged with all stakeholders, including exporters and the industry, for their feedback on the assessment of the situation.
Stating that the government will give utmost importance to protect and promote the welfare of farmers, workers, entrepreneurs, exporters, MSMEs and all sections of the industry; Goyal said that India has already inked mutually beneficial trade agreements with the UAE, UK, Australia and EFTA countries in an increasingly protectionist world, and remains committed to similar trade agreements with other countries.
On 2nd April 2025, the US President had issued an executive order on reciprocal tariffs imposing additional duties ranging from 10% to 50% on imports from its trading partners. A baseline duty of 10% has been effective from 5th April 2025. The additional duty on India was announced at 26% including baseline tariff of 10%.
Originally, the full country-specific additional duty was to be effective from 9th April 2025 but was postponed initially for 90 days on 10th April 2025 and further extended up to 1st August 2025. India and the US entered negotiations for a fair, balanced and mutually beneficial bilateral trade agreement (BTA) in March 2025 with a target to complete the first tranche of the agreement by fall of 2025.
The two sides finalised the detailed Terms of Reference (ToR) to enter negotiations of the BTA on 29th March 2025 during the first physical round of discussions held at New Delhi.
Thereafter, four physical rounds of negotiations have taken place between both sides, in New Delhi and Washington D.C., to work towards finalisation of the BTA in accordance with the agreed ToR.
In addition, there have been many virtual meetings between the two sides.
Also Read: India may hold off response to US tariffs pending details: Sources
