Priyanka Tiwari
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With tensions building over the reciprocal tariffs proposed by US President Donald Trump, US Commerce Secretary Lutnik indicated that it is imperative for India to slash its tariffs in order to construct a so-called ‘extraordinary relationship’ between the two countries.
He spoke during the India Today Conclave and emphasized that both India and America had an objective of negotiating a great trade deal as India sits on a low tariff structure with the US, which, in his words, 'had to change.'
Lutnik had some remarks when America was advocating for India to lower the duties towards agriculture products. He stated that ‘America is looking to have an all-encompassing India-US trade deal* which covers almost all the primary issues and encouraged both countries to deal with each other directly to change the trade relations.
“The market for agriculture in India has to open up, it cannot just remain closed. The manner and magnitude in which you proceed have limits; you could be smarter if you have your most significant trading partner on the other side of the table. Maybe some products have quotas and limits and we as the other side do the same thing and we create an agreement that is rational between both ends,” he told India Today.
“There is no inflation from tariffs, but in India, we knew even back then that India had the second highest tariffs in the world, but a tariff does not cause inflation does not create inflation in India. The only things that cause inflation are running deficits and printing more money," he says.
Reiterating the agenda of Donald Trump, he made sure to explain that India of course has some of the highest tariffs in the world which means there needs to be an evaluation of the relation in order to determine how India and US ties will proceed in the future.
"We wish to undertake a macro wide shallow slice deep trade deal with India that covers all issues,” he stressed. "The US hopes to do something on a grand scale, not one of product by product, either let’s reduce the tariffs from India towards the US and then America will permit India to come," he added.
