Commerce Ministry reviewing India-US trade relations amid Trump statements

New Delhi: The Commerce Ministry is reviewing various aspects of India-US trade relations focusing on implications of statements made by US President-elect Donald Trump during his election campaign and after the results, an official said.

The official added that there are no irritants in the relations between the two countries that can lead to discriminatory tariffs against India.

Trump, during his election campaign, has called India an “abuser” of import tariffs, a claim that echoed his October 2020 statement labelling India the “Tariff King”.

Trump on Saturday also warned BRICS countries against any move to replace the US dollar and has sought a commitment from the nine-member group that includes India, Russia, China, and Brazil.

In the wake of such statements, brainstorming is fundamental to discuss the trade relations as the US is the largest trading partner of India.

Trade experts have time and again stated that Trump’s claim that India is an “abuser” of import tariffs is unfair as many nations including America protect their domestic industries by imposing high customs duties on certain products.

According to WTO’s World Tariff Profiles 2023, the US also imposes high duties on items like dairy products (188 per cent), fruits and vegetables (132 per cent), coffee, tea, cocoa and spices (53 per cent), cereals and food preparations (193 per cent), oilseeds, fats and oils (164 per cent), beverages and tobacco (150 per cent), fish and fish products (35 per cent), minerals and metals (187 per cent), and chemicals (56 per cent).

An expert said that if the US would seek a cut in customs duties for some of their products, India should also demand a similar reduction to get greater market access for domestic items.

The US was the largest trading partner of India in 2023-24. India’s exports stood at $77.51 billion, while imports aggregated at $42.2 billion in the last fiscal.

India’s trade relations with the US will continue to grow irrespective of the change in regime in America and according to the commerce ministry data, India’s exports to the US jumped to $39.2 billion in October against $21.46 billion in October 2015.