Former commerce secretary declares India may turn to new partners due to US tariffs
(MENAFN) India is likely to explore new trade partnerships in response to the recent 26% US tariffs on Indian imports, according to Ajay Dua, a former Commerce and Industry Ministry secretary. Speaking to RT, Dua described the tariff decision by President Donald Trump as unexpectedly “harsh,” particularly given the ongoing negotiations for a US-India free trade agreement.
Dua warned that the tariffs could significantly impact India’s export sector, which enjoys a $35–40 billion surplus with the US. He suggested that New Delhi may need to reconsider its trade approach—potentially introducing retaliatory measures or pursuing an "early harvest" deal to ease tariffs on select goods.
While India is open to lowering tariffs on specific imports like crude oil and almonds, Dua stressed that New Delhi is unlikely to compromise on protecting its agricultural sector, which supports nearly 45% of the country’s workforce. He emphasized that food security and farmer livelihoods are sensitive issues in India.
Despite the strain, Dua said India prefers to maintain a cooperative diplomatic relationship with the US and hopes to resolve the trade dispute without broader fallout. He added that trade tensions shouldn’t affect other areas of cooperation, including defense and scientific collaboration.
Looking beyond the US, Dua noted that India might deepen trade ties within Asia. This could include re-engaging with China and potentially joining the Regional Comprehensive Economic Partnership (RCEP), a major Asia-Pacific trade bloc. Chinese Ambassador Xu Feihong recently expressed Beijing’s willingness to enhance trade with India and encourage Indian companies to explore business opportunities in China.
Dua’s comments highlight India’s growing consideration of alternative trade routes and partners amid rising US protectionism.
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