Trade issues are expected to be high on the agenda when the US vice president visits the South Asian nation later this month

US Vice President J.D. Vance is planning to visit India later this month, Politico reported on Wednesday, citing sources. The contentious issue of tariffs is expected to come up for discussion during the trip.

US President Donald Trump has frequently criticized the tariffs levied by India and has threaten to impose reciprocal American tariffs starting from April 2.

Last week, Trump further claimed that India has agreed to reduce its tariffs after being "exposed" for its restrictive trade practices. "They have agreed, by the way. They want to cut their tariffs way down now because somebody's finally exposing them for what they have done," he said.

New Delhi, however, clarified that any decisions on tariffs would not be rushed. Indian Commerce Minister Piyush Goyal, who recently visited the US for talks, told the country's parliament on Tuesday that the government is engaging with Washington to eliminate tariffs and non-tariff barriers to improve trade, Indian Express reported. Representatives from sectors including automobiles, leather, textiles, electronics and pharmaceuticals, among others, are expected to present their stance on tariff concessions that may be offered to the US during trade negotiations, the report noted.

Other government officials have also ought to soothe exporters' frayed nerves and opposition parties' queries on tariffs. The minister of state for commerce and industry Jitin Prasada, said that India and the US intend to negotiate a trade agreement, with a focus on increasing market access, reducing import duties, eliminating non-tariff barriers, and strengthening supply chain integration between the two countries, the PTI news agency reported. Prasada noted that till date, reciprocal tariffs have not been imposed on India.

During their meeting in Washington last month, Trump and Indian Prime Minister Narendra Modidiscussedelevating bilateral trade to $500 billion by 2030, more than double the current volume. New Delhi and Washington have also vowed to finalize the first phase of the Bilateral Trade Agreement (BTA), a deal that would address existing barriers, by the fall of 2025.

India has traditionally imposed some of the highest average tariffs worldwide, adhering to a policy of safeguarding domestic industries since its independence in 1947. On Thursday, the Financial Times, citing analysts, reported that ongoing negotiations could collapse, potentially triggering retaliatory tariffs as early as April.

The US remains India's largest trading partner, while India ranks as the tenth-largest for the US, according to data from the US Census Bureau and India's Commerce Ministry. In the fiscal year 2023-24, bilateral trade surpassed $119.7 billion, with India recording a $32 billion trade surplus.

(RT.com)