The United States’ 50 percent tariff on Indian goods came into effect on Wednesday, escalating trade tensions between the two nations. The measure, introduced by President Donald Trump’s administration, has drawn a cautious response from both sides. U.S. Treasury Secretary Scott Bessent described the bilateral trade issue as “complicated” but expressed confidence that “eventually” India and the U.S. would reach an understanding.
In a recent television interview, Bessent noted that he had expected a trade agreement with India by May or June this year. He described New Delhi’s current negotiation stance as “constructive,” contrasting with his earlier remarks that India had been “somewhat uncooperative” at the negotiation table.
Meanwhile, India has accelerated efforts to diversify its export markets in response to the steep U.S. duty. According to senior officials, India is preparing targeted strategies for 40 countries, including the UK, France, Germany, Spain, and Italy, with additional focus on the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkey, the UAE, and Australia.
The strategy involves organizing trade fairs, buyer-seller meets, and sector-specific promotional campaigns. The Commerce Ministry is also set to hold a series of consultations with exporters from key sectors such as textiles, chemicals, and gems & jewelry, aimed at reducing dependence on limited markets and products while creating roadmaps for entry into new geographies.
These initiatives align with the government’s proposed “Export Promotion Mission,” designed to provide targeted support and updated market intelligence to Indian exporters. Commerce Secretary Sunil Barthwal recently confirmed that, in the wake of higher U.S. tariffs, India’s top priority is to diversify exports and strengthen its global market footprint.
