India should resist unilateral concessions in US trade negotiations: Ex-commerce secretary Wadhawan

As India and the US engage in critical trade talks this week, former Commerce Secretary Anup Wadhawan has cautioned against giving in to unilateral concessions. Speaking to CNBC-TV18, Wadhawan said that any trade-related concessions should be negotiated within the Bilateral Trade Agreement (BTA) rather than being granted separately.

“Anything given outside the agreement gets pocketed and swallowed,” he warned, adding that India must ensure a fair and reciprocal deal.

The need for countermeasures

Wadhawan also stressed the need for countermeasures if the US proceeds with reciprocal tariffs, similar to India’s past response to US steel and aluminium duties. He noted that imposing such duties while negotiating a trade agreement is contradictory.

“You can either have a trade war or negotiate a trade deal for mutual benefit—both can’t go together,” he said.

Wadhawan also expressed concern over Washington’s trade strategy, which is increasingly targeting countries with high trade deficits. With India ranking 11th on the list, he acknowledged the potential impact but downplayed fears of a major disruption.

“Certainly, there will be some impact on our exports, but I don’t see a catastrophic impact,” he explained, estimating that reciprocal tariffs could affect around $6 billion of India’s exports to the US.

India must ensure US reciprocity in trade concessions

Despite reports that India may cut tariffs on 55% of US imports, Wadhawan dismissed this as manageable.

“Compared to our FTAs with Japan, Korea, and ASEAN, where over 80% of tariff lines went to zero, this is not an unmanageable number,” he stated.

He reiterated that India must ensure the US reciprocates in kind before making any major trade concessions.

Watch accompanying video for entire conversation.