Page 8 - The Indian EYE 041825

EYE ON INDIA APRIL 18, 2025 | The Indian Eye 8

TARIFF WAR

India working on a quick trade deal with US

as Trump tightens the screws on China

Fitch Ratings said in a report that tariff revenues will help narrow the US budget deficit in
2025, but the hit to economic growth are likely to limit any fiscal benefit

OUR BUREAU
Washington, DC/New Delhi

S Secretary of the Treasury
Scott Bessent on Wednesday
Uaddressed the immediate in-
crease in tariffs of 125 per cent on
China, stating that the issue is not just
about the country but also about “bad
actors” in global trade during a press
briefing at the White House.
During the briefing, along with
the White House Press Secretary
Karoline Leavitt, Bessent stated that
trade negotiations amid the recipro-
cal tariff announcements were mainly
taking place with “China’s neighbors”
like Japan, South Korea and India.
“Well, it’s about bad actors. And
what we see is some of the very early
countries are China’s neighbors that
we’re going to see. I’ve seen Vietnam
today. Japan is in front, South Korea
and India. So, we will see. And as I’ve
repeatedly said, and President Trump
has been saying for four years, China
is the most imbalanced economy in
the history of the modern world, and MEA spokesperson Randhir Jaiswal highlighting the efforts towards a mutually beneficial trade agreement with the US at a briefing (ANI)
they are the biggest source of the US
trade problems. And indeed, they are While addressing a weekly press brief- ing at the News 18 Rising Bharat that tariff revenues will help narrow
a problem for the rest of the world,” ing on Wednesday, Jaiswal said, “On Summit, Jaishankar said that India’s the US budget deficit in 2025, but the
Bessent said. the 3rd, we had a detailed press re- strategy was clear and that it would hit to economic growth and additional
“I’m not calling it a trade war, but lease issued by the Ministry of Com- engage with the United States on a bi- tax cuts are likely to limit the size of
I am saying that China has escalated, merce, in which India’s position was lateral trade agreement, which could any lasting fiscal benefit.
and the President responded very made clear. We are studying the im- conclude by the fall of this year. Jais- The credit rating firm added
courageously to that, and we are going plications of the tariffs that have been hankar said that India’s strategy has that stabilizing US debt and GDP
to work on a solution with our trading announced.” been to engage with the US in fructi- will be challenging as long as long-
partners,” he added. He added, “Reciprocal tariffs and fying the bilateral trade agreement. term spending pressures remain un-
This statement came as the Min- discussions are ongoing between India The EAM noted that as every addressed. The tariffs announced on
istry of External Affairs (MEA) on and US Trade teams for an expeditious country is tariffed, each is fashioning April 2 raise the US Effective Tariff
Wednesday addressed the ongoing conclusion of a mutually beneficial its own strategy to deal with the US. Rate (ETR) to about 25 per cent,
trade discussions with the United multi-sectoral bilateral trade agree- Meanwhile, US President Don- compared with the already sharp
States, with spokesperson Randhir ment. India values its comprehen- ald Trump on Tuesday said that coun- increase to 18 per cent assumed in
Jaiswal highlighting the efforts to- sive global strategic partnership with tries affected by US tariffs are eager Fitch’s Global Economic Outlook for
wards a mutually beneficial trade the US and is committed to working to negotiate and make deals with him, March 2025.
agreement. closely with it... Both teams are in dis- offering to do anything to secure an It remains to be seen whether prod-
In response to recent tariff an- cussion and hopefully we can close it.” agreement. While speaking at the uct-specific exemptions, mostly cover-
nouncements, Jaiswal reiterated that Earlier in the day, External Af- National Republican Congressional ing pharmaceuticals and semiconduc-
India is carefully studying the impli- fairs Minister S Jaishankar responded Committee, Trump said he was a bet- tors, are maintained, and if retaliatory
cations and engaging in reciprocal to the debate over tariffs imposed by ter negotiator than Congress. measures see trade tensions escalate
discussions with the US trade teams. US President Donald Trump. Speak- But Fitch Ratings said in a report further, the credit rating firm said.

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