India is closely monitoring trade talks with US, says FM Sitharaman

Union Finance Minister Nirmala Sitharaman on Thursday said the government is closely watching ongoing trade negotiations with the United States, as the April 2 deadline for reciprocal tariffs by President Donald Trump approaches.

"We will have to see how the Commerce Ministry handles the negotiations in the US," Sitharaman said during her address at the launch of the book 'The Glimpses of World History' in Visakhapatnam, Andhra Pradesh.

The Finance Minister's comments come as Union Commerce Minister Piyush Goyal is currently in the US for discussions aimed at safeguarding Indian exporters' interests.

Sitharaman reassured that the interests of Indian exporters have been effectively communicated to US counterparts. She highlighted key actions taken by the government, such as conducting stakeholder consultations prior to negotiations, facilitating active discussions led by Commerce Minister Piyush Goyal in the US, and maintaining ongoing data-sharing with relevant industry groups to ensure that exporters' concerns are addressed and protected.

Despite the uncertainty, Sitharaman remained cautious about speculating on the outcome of the talks. “That’s all I can say for now - let’s see what comes out of the negotiations,” she said.

Trump’s reciprocal tariff plan

The trade discussions come amid Trump’s push for reciprocal tariffs, a policy aimed at matching import duties levied by trading partners on American goods. This has raised concerns for Indian exporters, particularly in sectors like textiles, pharmaceuticals, and IT services, which rely on stable trade relations with the US.

On Tuesday (local time), Trump set a deadline for April 2 for reciprocal tariffs to take effect, adding that India would not receive any concessions.

“India charges us 100 per cent tariffs; the system is not fair to the US, it never was. On April 2, reciprocal tariffs kick in. Whatever they tax us, we will tax them. If they use non-monetary tariffs to keep us out of their market, then we will use non-monetary barriers to keep them out of our market,” the US President said while addressing a joint session of Congress.

While India and the US have deep economic ties, past trade tensions have occasionally surfaced over market access, tariff structures, and regulatory policies. The outcome of these negotiations will be crucial in shaping the next phase of India-US trade relations under the Trump administration.