India Has Effectively Walked Away from US Trade Talks Due to Tariffs: Ex-Finance Secy
In a candid admission, former Finance Secretary Subhash Garg stated that India has effectively walked away from trade talks with the United States due to President Donald Trump’s tariffs on India. In an exclusive interview with NDTV, Garg expressed his concerns over the tariff levels imposed by the US, stating that no country can trade at such levels. However, he also emphasized the importance of keeping the door open for future talks, hoping that sanity will prevail at some point.
The remarks from Garg, who served as the Finance Secretary from 2015 to 2019, come as a significant development in the ongoing trade tensions between India and the US. The two nations have been engaged in a trade war for several months, with the US imposing tariffs on Indian goods worth around $6 billion, citing concerns over India’s high tariffs and trade practices.
India has responded with tariffs of its own, imposing retaliatory duties on a range of US goods worth around $1.5 billion. The tariffs have had a significant impact on bilateral trade, with both countries experiencing an increase in trade deficit.
Garg’s comments highlight the challenges faced by India in negotiating with the US, which has been increasingly aggressive in its trade policies under the Trump administration. The former Finance Secretary emphasized that India cannot compromise on its domestic policies and interests, including its high tariffs and trade practices.
“No one can trade at those tariff levels. But India should never formally close the door- one must always hope sanity prevails at some point,” Garg stated.
Garg’s remarks also underscore the complexity of the trade talks between India and the US. The two nations have been engaged in negotiations for several years, but the talks have been stalled due to differences over issues such as tariffs, trade practices, and intellectual property rights.
The US has been pushing India to reduce its tariffs and open up its markets to American companies, particularly in the areas of agriculture and pharmaceuticals. India, on the other hand, has been resisting the US pressure, citing concerns over the impact on its domestic industries and the need to protect its interests.
Garg’s comments suggest that India may be willing to engage in talks in the future, but only if the US is willing to address its concerns and reduce its tariffs. The former Finance Secretary emphasized that India cannot compromise on its domestic policies and interests, and that any trade agreement must be mutually beneficial.
The remarks from Garg also highlight the challenges faced by India in its relations with the US. The two nations have a complex relationship, with significant economic and strategic ties. However, the trade tensions have also led to increased tensions between the two nations, particularly in the areas of defense and security.
In recent months, India has been strengthening its ties with other nations, including China, Russia, and the European Union. The country has also been exploring new trade agreements, including a proposed free trade agreement with the EU.
Garg’s comments suggest that India may be willing to engage in trade talks with other nations, but only if the terms are mutually beneficial. The former Finance Secretary emphasized that India cannot compromise on its domestic policies and interests, and that any trade agreement must be in the best interests of the country.
In conclusion, Garg’s remarks highlight the challenges faced by India in its trade talks with the US. The country has effectively walked away from the talks due to the tariff levels imposed by the US, but Garg emphasized the importance of keeping the door open for future talks, hoping that sanity will prevail at some point. The remarks also underscore the complexity of the trade talks between India and the US, and the need for both nations to address their concerns and find mutually beneficial solutions.
