Daijiworld Media Network - New Delhi
New Delhi, Mar 27: With the US reciprocal tariffs set to take effect from April 2, India must engage in strategic negotiations by offering targeted concessions in sectors that hold economic or political significance for US President Donald Trump, while ensuring minimal impact on domestic industries, a report suggested on Thursday.
Amid shifting global trade dynamics and Trump’s deal-making approach, Emkay Global Financial Services has identified potential "easy wins" for India. These include increasing energy imports (crude oil and natural gas) from the US, enhancing defense purchases and cooperation, lowering tariffs on select agricultural and food commodities, and reducing duties on foreign electric vehicles (EVs).
According to Madhavi Arora, Chief Economist at Emkay Global Financial Services, the most likely outcome on April 2 is a broad sector-level reciprocal tariff implementation, given the complexities of assessing individual commodities across value chains. She emphasized that India must work harder to expand its market share in the evolving global trade landscape. However, she reassured that while the tariffs may create short-term disruptions, the impact on India’s overall exports to the US is expected to be manageable, as ongoing negotiations are likely to yield positive results.
The report also highlighted that while tariffs on Mexico and Canada might create export opportunities for India in areas like refined petroleum and auto components, the interconnected nature of North American supply chains means that any potential benefits for India would take time to materialize.
Trump recently reiterated his demand for India to lower tariffs, stating that while he expects significant reductions, the US will proceed with imposing reciprocal tariffs from April 2. “I believe they’re going to lower those tariffs substantially, but on April 2, we will be charging them the same tariffs they charge us,” he said last week.
In an effort to prevent tariff hikes, Union Commerce Minister Piyush Goyal visited Washington earlier this month, engaging in discussions with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick. The Indian government continues to explore diplomatic solutions to ensure a balanced trade agreement that safeguards national interests while fostering stronger bilateral ties.