India says all reciprocal tariffs may not take effect on April 2 as US probe continues

As India and the United States aim for a multi-sectoral, mutually beneficial Bilateral Trade Agreement (BTA) by the end of 2025, both sides are currently in the process of finalising the scope, schedule, and contours of the trade deal.

Union Commerce Ministry has indicated that the American investigation leading to reciprocal tariffs is likely to go on till April 1, adding that it’s not sure if it would necessarily mean the imposition of reciprocal tariffs from April 2 onwards itself.

Also Read: How Trump tariffs may affect TCS and Infosys, as per Moody’s

As both sides wait to see the legal form of the proposed BTA, India is in the midst of assessing the positive and negative impact of the US tariffs, as the Commerce Ministry pointed out that tariffs on many other countries may come as an opportunity for India.

While India is engaged in stakeholder consultation, the Ministry added that it will take appropriate action at the right time to help Indian exporters. India and the US aim to increase their bilateral trade to $500 billion by 2030.

Union Commerce and Industry Minister Piyush Goyal met the US Secretary of Commerce and the US Trade Representative (USTR) in the 1st week of March on his visit to the US to follow up on the progress made for a potential BTA.

Also Read: February trade deficit shrinks to $14.05 billion, lowest in over three years