Hinting at a calibrated approach after the US Supreme Court's verdict on Trump's sweeping tariffs, Union Commerce Minister Piyush Goyal on Friday said that the joint statement on the trade deal provides for rebalancing.
Goyal made the remark days after Finance Minister Nirmala Sitharaman said that it is too early to comment on the tariff changes.
The Union minister made the comment at an event in New Delhi when he was asked if India's negotiating position will change after the verdict.
The minister also stated that India is watching developments following the US Supreme Court's verdict.
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"We'll have to watch. And by the way, you must have read my joint statement that we had finalised with the US. It has categorically said that should the circumstances change, the deal would be re-balanced...to ensure that the balance of the deal is maintained on both sides," said Goyal.
After a setback in the Supreme Court, on February 24, Trump announced 10 per cent tariff against all trading partners for 150 days, increasing the tariffs to 15 per cent a day later.
Trump has also warned that during the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again.
Following the court's 6-3 vote ruling that it was unconstitutional for Trump to unilaterally set and change tariffs, the president said that he was also pursuing tariffs through other sections of federal law which require an investigation by the Commerce Department.
A joint statement issued on February 7 stated that in the event of any changes to the agreed-upon tariffs of either country, the US and India agree that the other country may modify its commitments.
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Referring to this statement, Goyal said :"It provides that the sanctity of the deal is both ways."
On February 7, the two countries announced that they have finalised the contours for the first phase of the bilateral trade agreement.
Under the pact, the US announced that it will bring down the reciprocal tariffs on Indian goods to 18 per cent from 25 per cent. The US has also removed the 25 per cent punitive tariffs on India, which were imposed for purchasing Russian crude oil.
"It is an evolving situation. We'll have to see. The Trump administration has made some comments... They have many other tools that they could possibly use (to impose new tariffs). They've already used one of them, Section 122, to put a 10 per cent tariff. I think they are on record that next week, they may increase it to 15 per cent for the first 150 days," Goyal said.
When asked if the changes in tariffs provide incentives for India, the minister said it gives an opportunity to domestic firms to continue exports without hindrance.
Earlier, Goyal noted that all the sensitive sectors such as dairy, soyameal, poultry, GM food, rice, wheat and corn are fully protected.
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