India Seeks Swift Trade Deal With US As Trump Pauses Tariffs For Several Nations: Report

As US President Donald Trump put a temporary halt on reciprocal tariffs for several countries, India is reportedly keen to expedite a trade agreement with the United States, according to a Reuters report quoting an unnamed Indian government official on Thursday.

In February, New Delhi and Washington agreed to work on the initial phase of a trade pact, aiming for completion later this year, with the ambition of reaching bilateral trade worth $500 billion by 2030.

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"India is among the first nations to initiate discussions on a deal with the US and to have agreed on a joint deadline for its conclusion," the official told Reuters.

India's Union Commerce Minister, Piyush Goyal, stated at an event in New Delhi earlier this week that both Indian and American manufacturers have suffered from China's unfair trade practices over the years.

The official added that India will tighten scrutiny on imports to identify any possible dumping of goods, including those from China.

On Wednesday, Trump announced a temporary reduction of duties for key trading partners, including India, just a day after enacting tariffs that triggered the most intense market turbulence since the early days of the COVID-19 pandemic.

Refocusing his efforts on a bilateral trade dispute with China, Trump confirmed that tariffs on Chinese imports would be raised to 125%. The reciprocal tariff on Indian goods, however, remains at 10%.

The pause in tariffs is especially welcome news for Indian shrimp exporters, who had previously faced a competitive disadvantage compared to nations like Ecuador, the official noted.

Additionally, US tariffs have impacted nearly $14 billion worth of Indian electronics exports and over $9 billion in gems and jewellery.

Ajay Sahai, Director General of the Federation of Indian Export Organisations-which represents more than 37,000 exporters-remarked that the 90-day pause presents an opportunity for Indian negotiators to finalise a trade deal with the US.

"The US seems determined to take a hard line on China. If it wishes to maintain a steady supply of goods for its consumers without driving up inflation, India stands out as one of the most dependable suppliers," Sahai said.

Chinese Investors Keep Faith

Meanwhile, Chinese stocks ended Thursday with another round of gains, shrugging off Trump's decision to hike tariffs on Chinese goods to an unprecedented 125%.

This suggests that investors are placing their trust in Beijing's capacity and resolve to bolster the economy and financial markets amid the intensifying trade dispute.

Chinese authorities continue to send out positive signals. Senior leaders are expected to convene for discussions on additional economic stimulus, with particular focus on housing, consumer spending, and innovation.

These talks follow pledges made earlier in the week to "fight to the end" in response to Trump's tariff escalation, along with efforts by state-backed funds to prop up the markets.

A key index of Chinese stocks listed in Hong Kong rose by 1.8%, marking its third consecutive day of gains, while the CSI 300 Index on the mainland gained 1.3%.

This comes despite China being excluded from the US President's 90-day tariff pause granted to other trade partners.