US-India Trade Deal: Chamber of Commerce Hails "Important Momentum"

US Chamber of Commerce president and CEO Suzanne P. Clark said the announcement marked important momentum. "We congratulate the US and Indian governments on their announcement to reduce tariffs and non-tariff barriers that will benefit American and Indian companies and workers in both great nations," Clark said.

She praised the leadership behind the effort. "We appreciate the efforts of President Trump and Prime Minister Modi, and their officials, including Ambassadors (Vinay) Kwatra and (Sergio) Gor," she said.

Clark said the Chamber was optimistic the move would lead to more progress. "We are optimistic that this is the first step toward a comprehensive trade agreement that will unlock even more private sector collaboration," she said, adding that the Chamber looks forward to reviewing the details.

Clark said the Chamber and its US-India Business Council strongly support the effort. "The Chamber, our US-India Business Council, and our members are strong champions of this effort," she said. "We look forward to partnering with both governments to implement today's announcement."

Clark traveled to Delhi and Mumbai last year and met Indian officials and business leaders. She had called for a trade deal and said the US-India economic relationship is among the most consequential in the world. She said a deal would benefit both economies and global security.

Economist Steve Hanke offered a mixed reaction on social media. "In exchange for having its tariffs lowered, India commits to buying $500 billion worth of US energy, technology, agriculture, and more," Hanke wrote.

Hanke said tariffs remain a concern. "US tariffs on India are still way too high," he said. In a separate post, he noted that the United States would cut tariffs on Indian goods from 25 per cent to 18 per cent, and that India would stop buying Russian oil.

In a statement, USISPF said it "enthusiastically welcomes President Donald J. Trump's announcement following his conversation with Prime Minister Narendra Modi, which reaffirms their shared commitment to deepen the US-India economic partnership and advance a bilateral trade agreement."

The forum described the reduction of India's reciprocal tariff from 25 per cent to 18 per cent as "an important and positive first step," even as it noted that the details of the agreement are still to be finalised.

"While the agreement's specifics are pending, today's announcement signals strong political will on both sides to move toward a comprehensive US-India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors," the statement said.

According to USISPF, a bilateral trade agreement would "deliver meaningful benefits for businesses, workers, and consumers in both countries," while also strengthening supply chains and improving overall economic resilience.

The forum emphasised that both governments have made clear that the announcement marks the beginning of a longer negotiating process.

"Both governments have made clear that this is only the beginning, with additional phases and negotiations anticipated in the months ahead," USISPF said, adding that it was encouraged by the "constructive momentum" created by the latest announcement.

USISPF reiterated its commitment to working closely with both the Government of India and the US Government to advance the shared objective of expanding bilateral trade toward the $500 billion target.

"A stronger US-India trade and investment relationship is not only critical to both economies but also central to advancing a stable, resilient, and rules-based Indo-Pacific," the statement said.

- IANS