The government on Monday informed Parliamentary Standing Committee on External Affairs that the US has driven a hard bargain with all the countries with which it has finalised bilateral trade deals. Giving details of the US deals with Japan, South Korea, Vietnam and the EU, the government pointed out that the additional tariffs on all these countries have either been adjusted or reduced but not completely removed despite the heavy concessions extracted from them in return.
The government said India is formulating an export diversification strategy to blunt the blow of US’ tariffs although efforts are still on to negotiate a bilateral trade agreement (BTA) with the US. At the same time, India is standing firm on not giving in on sensitive sectors. Foreign Secretary Vikram Misri and Commerce Secretary Sunil Barthwal briefed the Standing Committee headed by Congress MP Shashi Tharoor on developments with the US.
“It was reiterated by the government that India would not cross its red lines in the BTA negotiations, including in agriculture and dairy. It was highlighted that in return for adjusted tariffs, the countries that struck deals with the US had to provide massive trade related concessions to the US, including tariff elimination, and undertake obligations on investment and purchase,” a source noted.
BTA stalemate
A team of trade officials from the US is scheduled to visit New Delhi on August 25 for the next round of the BTA talks but after US President Trump said that the tariff issue had to be sorted out first before more negotiations, there is confusion. “The US has so far not conveyed anything on a change of schedule for the next round of talks or calling it off,” the source said.
The ongoing stalemate on the BTA has sharpened the realisation in India that there is an urgent need to diversify and not be dependent on one big market.
“The Commerce Department has identified top 50 export destinations where shipments could be increased by offering targeted support. India could also try to export more to countries that had been treated less severely by the US, such as the UAE, as they may need more intermediate goods,” another official explained to businessline.
Focussed efforts are being made to get the most of India’s existing FTAs with countries such as the UAE, Australia, ASEAN, Japan, Korea and Mauritius, the officials told the Standing Committee.
“Preparations are also being made to leverage the new FTAs signed with the EFTA countries and the UK, as soon as these agreements come into force. Also negotiating teams are trying to expedite ongoing negotiations with partners, such as the EU, on the basis of mutually beneficial and balanced trade principles,” the source said.
US President Donald Trump has imposed successive executive orders, taking the total levies imposed on India to 50 per cent, much higher than its competitor countries.
Published on August 11, 2025