US-India Trade Soars: $500B Target Set as Commerce Secretary Visits

In a post on X, the US Embassy said, "Welcome to India, Secretary @HowardLutnick! Your visit celebrates the enduring friendship between our two great democracies. Thanks to your support, the U.S.-India economic relationship has never been stronger. With our new target of $500 billion in bilateral trade, the United States and India are creating jobs, driving innovation, and building shared prosperity."

Earlier on Thursday, in a post on X, Union Minister Piyush Goyal shared that he engaged in fruitful discussions to expand trade and economic partnership between India and the United States.

He said, "Hosted US Secretary of Commerce @HowardLutnick & @USAmbIndia Sergio Gor. Engaged in very fruitful discussions to expand our trade and economic partnership."

US Ambassador to India, Sergio Gor called it "a highly productive lunch".

Later in the day, Lutnick also arrived in Jodhpur.

His visit comes amid the backdrop of the United States and India announcing that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade, and the recent US Supreme Court ruling.

The framework reaffirmed the countries' commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

The Interim Agreement includes India eliminating or reducing tariffs on various US industrial goods, food, and agricultural products, while the US applies a reciprocal 18 per cent tariff on certain Indian-origin goods under an existing executive order, with provisions for removals upon successful conclusion of the agreement.

Meanwhile, the US Supreme Court on Friday ruled against most of Trump's sweeping tariff measures. Trump later signed an order making 10 per cent global tariff on all countries, effective "almost immediately".

The Court ruled 6-3 that the administration exceeded its authority by using the International Emergency Economic Powers Act (IEEPA) of 1977 to impose broad-based import tariffs, affirming that the power to levy taxes resides primarily with Congress.

Following the ruling, Trump announced a new 10 per cent global tariff on all countries under Section 122 of the Trade Act of 1974, describing it as a temporary import surcharge (up to 15%) allowed for 150 days to address balance-of-payments deficits.

He later raised it further to the "fully allowed, and legally tested, 15% level," effective immediately.

In a Truth Social post, Trump stated that this adjustment responds to the Supreme Court's "ridiculous, poorly written, and extraordinarily anti-American decision," while his administration would determine new, legally permissible tariffs in the coming months to continue "Making America Great Again."

- ANI