1 week Ago
Trump tariffs: External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio had a telephonic conversation where both the leaders discussed the trade partnership between the two countries. Jaishankar and Rubio also discussed the 26 per cent tariffs imposed by the Trump administration and how both sides could ink a “fair and balanced trade relationship”. India is reportedly one of the only countries pursuing a bilateral trade agreement with the US.
According to a report in Mint, India is now exploring a plan to negotiate the suspension of the 26 per cent tariffs by the US till the Bilateral Trade Agreement (BTA) is finalised this year. Jaishankar and Rubio also discussed the importance of concluding the BTA early, as tweeted by the foreign minister. “Exchanged perspectives on the Indo-Pacific, the Indian Subcontinent, Europe, Middle East/West Asia and the Caribbean,” said Jaishankar.
Meanwhile, the United States Trade Representative (USTR) highlighted India’s ban on US ethanol imports as “unfair trade practice”. Jaishankar and Rubio’s conversation comes in the background of Union Commerce Minister Piyush Goyal accusing China of boosting its economic growth through unfair trade practices. He stated that China’s rise was supported by distorted pricing, opaque subsidies, and labour practices that breach global trade norms.
Goyal emphasised the need for reforms to restore balance and fairness in international trade, especially considering the ongoing stock market turmoil. He said China’s increasing dominance in global trade, warning that it adversely impacts economies like India. He cautioned that without corrective measures to address these imbalances, the world could face deeper economic distress.
India and US’ bilateral talks come amid an escalating trade war between the US and China. Following Trump’s 34 per cent tariffs on China, the latter announced similar reciprocal tariffs of 34 per cent. Trump said an additional 50 per cent duty on Chinese imports will be imposed if they don’t take back their reciprocal tariffs.
China has said that it will not succumb to blackmail from the US. "The US side's threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side's blackmailing nature. If the US insists on having its way, China will fight to the end,” said China's commerce ministry.
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