Commerce Minister Piyush Goyal recently held high-level trade talks in Washington, engaging with both the US Trade Representative (USTR) and the US Secretary of Commerce. Officials from both countries are expected to reconvene after reviewing the outcomes of the latest discussions.
Meanwhile, the US is unlikely to make any exceptions for India regarding its new reciprocal tariff policy, which takes effect on April 2. US President Donald Trump, in his first address to a Joint Session of Congress after securing a second term, reiterated his stance on what he called “unfair” trade practices by several nations, including India and China.
“Other countries have used tariffs against us for decades, and now it’s our turn. The European Union, China, Brazil, India, Mexico, Canada, and countless other nations impose significantly higher tariffs on our exports than we do on theirs. It’s very unfair,” Trump said.
The US has announced reciprocal tariffs against multiple trading partners, aligning import duties on foreign goods with the tariffs those nations impose on American exports.
India-US trade
In FY24, India-US bilateral trade reached US$ 118.2 billion, compared to US$ 128.78 billion in FY22, according to data from the India Brand Equity Foundation (IBEF).
India recorded a trade surplus of US$ 36.8 billion with the US in FY24, with exports amounting to US$ 77.5 billion, while imports from the US stood at US$ 40.7 billion.
The United States remains India’s third-largest investor, with cumulative FDI inflows of US$ 67.76 billion from April 2000 to September 2024.
Here’s what India-US exports and imports look like –
India’s major exports to the US
| Category | FY24 (US$ Billion) | April–Nov 2024 (US$ Billion) |
|---|---|---|
| Engineering Goods | 17.6 | 12.33 |
| Electronic Goods | 10.0 | 6.79 |
| Gems & Jewellery | 9.90 | 6.28 |
| Drugs & Pharmaceuticals | 8.72 | 6.34 |
| Petroleum Products | 5.83 | — |
| RMG Cotton & Accessories | 4.71 | 3.32 |
| Total Exports to the US | 77.5 | 52.95 |
India’s major imports from the US
| Category | FY24 (US$ Billion) | April–Nov 2024 (US$ Billion) |
|---|---|---|
| Mineral Fuels & Oils | 12.9 | 9.98 |
| Pearls, Precious & Semi-Precious Stones | 5.16 | 3.21 |
| Nuclear Reactors, Boilers & Machinery | 3.75 | 2.81 |
| Electrical Machinery & Equipment | 2.38 | 2.02 |
| Total Imports from the US | 40.7 | 29.63 |
Temporary tariff exemption for automakers
Meanwhile, Trump also announced a one-month exemption for automakers from his 25% tariffs on Canada and Mexico, provided they adhere to existing free trade agreements, the White House said on Wednesday. The move helped ease a sharp decline on Wall Street, which had seen its steepest drop in nearly three months.
The White House also stated that Trump is open to considering exemptions for other products affected by the tariffs, which came into effect on Tuesday, according to Reuters.
However, Trump made it clear that his broader trade dispute with Canada and Mexico remains unchanged, as he continues to push both nations to take stronger measures against fentanyl smuggling. After a phone call with Canadian Prime Minister Justin Trudeau, Trump expressed skepticism about progress on the issue.
