Senior US trade official to visit India ahead of reciprocal tariff implementation
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Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, is set to visit India for five days starting March 25, just days before the US enforces a reciprocal tariff on trading partners, including India.
During his visit, Lynch will engage in discussions with Commerce Minister Piyush Goyal and other senior Indian officials. The talks will likely focus on the possibility of securing a temporary waiver for India from the upcoming tariff, which is scheduled to take effect on April 2.
Beyond tariff-related discussions, the two sides are expected to work toward finalising a bilateral trade agreement (BTA) that aims to address issues related to levies and market access.
A US official emphasised that this visit underscores Washington’s commitment to strengthening trade relations with India and maintaining equitable and forward-looking discussions.
India’s External Affairs Ministry spokesperson Randhir Jaiswal also confirmed that talks with the US administration are ongoing at various levels to reach a mutually beneficial trade agreement.
The upcoming reciprocal tariff is part of former President Donald Trump’s "America First" policy, under which the US seeks to counter countries that impose higher tariffs on American imports. This move has raised concerns over a potential global trade war, with many nations considering countermeasures.
Trade talks between Prime Minister Narendra Modi and Donald Trump in Washington last month set the stage for ongoing negotiations, with both leaders agreeing to finalise the first phase of the BTA by fall 2025.
India has already lowered its average applied tariffs for key trading partners like Australia, the UAE, Switzerland, and Norway through bilateral agreements. Similar negotiations are currently underway with the European Union and the United Kingdom.
In its Union Budget for 2025-26, India reduced tariffs on Bourbon whiskey, wines, and electric vehicles (EVs) - a move widely interpreted as a gesture of goodwill toward Washington, signaling openness to lowering tariffs in select sectors.
Washington is also urging India to increase imports of American oil, gas, and military equipment to reduce the $45 billion trade deficit that currently favors India.
Despite trade tensions, the US remains India’s largest trading partner, with total bilateral trade in goods and services reaching $190 billion in 2023. The US was also the third-largest source of Foreign Direct Investment (FDI) into India in FY 2023-24, contributing $4.99 billion in inflows.
As negotiations progress, Lynch’s visit will play a crucial role in determining the future trajectory of US-India trade relations, especially in light of the impending reciprocal tariffs.