Priyanka Tiwari
Share
Just days after US President Donald Trump announced new reciprocal tariffs on imports, several countries including India, Vietnam, and Israel have started urgent talks with the US. Their goal is to either secure exemptions or negotiate country-specific trade agreements to reduce the impact of the tariffs.
According to CNN, the affected nations are moving fast to hold bilateral discussions with the Trump administration. These talks aim to reduce the disruption to trade flows and economic relations.
India in Quiet Talks to Reduce Tariff Impact
Moneycontrol reported that India is now in backchannel discussions to prepare a list of goods for tariff relief under Trump’s policy. Sources say both sides are working on a deal that would see India cut duties on certain US agricultural exports, such as almonds and pistachios. In return, the US may lower tariffs on Indian exports like pharmaceutical goods and automobile parts.
These talks reportedly took place in Delhi between March 24 and 29, led by Assistant US Trade Representative Brendan Lynch. However, Trump still went ahead with announcing a 26 percent tariff on Indian imports shortly after the talks concluded.
Israel and Vietnam Also Open Trade Channels
Reuters reported that US Secretary of State Marco Rubio recently spoke with Israeli Prime Minister Benjamin Netanyahu about the tariffs. Under the new policy, some Israeli exports to the US will face a 17 percent duty.
Vietnam, which was hit with a 46 percent tariff, acted swiftly. President Trump posted on Truth Social about a “very productive call” with Vietnamese General Secretary To Lam. Vietnam may remove all tariffs on US imports in return for a bilateral deal.
Trump Defends Tariffs, Highlights Trade Gaps
At a White House event on April 3, President Trump introduced the new global tariff chart, describing the event as “Liberation Day.” He specifically mentioned India’s high tariffs, stating that the US would now impose a 26 percent reciprocal tax on Indian imports.
Calling India "very tough" on tariffs, Trump said he had spoken to Prime Minister Modi and demanded fairer trade terms. He emphasized that the US had charged India “almost nothing” for years, calling for more balanced trade practices.
India’s Role in US Trade
India is currently the tenth-largest exporter to the US, sending goods worth $91 billion in 2024. The US is India’s largest export destination and its fourth-largest import partner.
Trump has often referred to India as the “tariff king” and raised similar concerns earlier during a February 13 press conference with Prime Minister Modi.
Trade Talks Before May 3 Deadline
A senior White House official told CNN that the Trump administration is open to customized trade deals with countries that engage in early talks. India, Vietnam, and Israel may be among the first to reach agreements before the tariffs fully take effect on May 3. A 25 percent duty on automobile parts is also scheduled to begin that day.
Market Reaction to Tariff News
Financial markets responded sharply. The S&P 500 index dropped to an 11-month low, losing $5.4 trillion in value across two days. Federal Reserve Chair Jerome Powell warned the tariffs could cause long-term inflation. The index fell by 6 percent on Friday, its biggest single-day drop since March 2020. The Nasdaq 100 also entered a bear market, falling 6.1 percent. Tech companies were heavily affected, with Nvidia and Apple down over 7 percent and Tesla falling 10 percent.
Read More: Trump Defends 104% Tariffs Amid Rising Global Trade Tensions
