"I don't think it's going to have the kind of impact that similar tariffs on Chinese or European goods": USIBC President Atul Keshap

Washington, DC [US], August 1 (ANI): US-India Business Council (USIBC) President Atul Keshap has expressed concerns about the potential impact of the 25% tariff imposed by the US on Indian goods, but believes it's crucial for both countries to forge a mutually beneficial deal.

In an exclusive interview with ANI, he said that the tariffs won't have a significant disruptive impact on the US economy, given India's relatively small share of US international trade, around 2.5%.

"The truth is that India doesn't have the leverage that some other economies have on the US. India only represents about 2 and a half per cent of America's total international trade," said Keshap.

However, he acknowledged the importance of Indian pharma imports to the US. Keshap noted that India doesn't have the same level of leverage as other economies, like China or European countries, which have more substantial trade relationships with the US.

"I think the pharma that comes in from India is probably the most important element that comes into our country. Those items will be taxed a little bit higher. But I don't think it's going to have the kind of impact that similar tariffs on Chinese or European goods would have," said USIBC President.

Indian pharma imports will likely face higher taxes, but Keshap believes the impact will be manageable. Despite this, Keshap expressed concerns about the uncertainty surrounding the tariffs, which has made both American and Indian companies nervous.

"There are certain very strategic and very necessary imports that we make from those countries that I think have caused us to think a little bit more carefully about the impact on the American economy. But in the case of India, I don't think that impact is similarly going to be felt. So, I get the sense that if these tariffs happen will not really have a very disruptive impact at home," said Keshap.

Keshap emphasised the importance of a mutually beneficial trade deal to foster economic growth and achieve the $500 billion trade target. The tariffs could lead to increased costs for American companies and consumers, potentially affecting the competitiveness of Indian goods in the US market.

He stressed that despite the frustration, both nations have a strong and strategic future ahead -- one that last-minute breakdowns in talks must not jeopardise.

"We have a future together to work on AI, semiconductors, and defence production that is critical to the future of the free world. If we fumble this negotiation at the goal line, we are all going to live to regret it..." he said, warning that the stakes are high for both countries.

With a 25% tariff plus penalty on Indian goods looming, Keshap emphasised the importance of reaching a mutually beneficial agreement to strengthen the US-India relationship.

Keshap highlights the potential for future collaboration in critical areas like AI, semiconductors, and defense production, which are vital to the free world.

"We have future together to work on AI, semiconductors, defence production that is critical to future of the free world. If we fumble this negotiation at the goal line, we are all going to live to regret it...," said Keshap.

He stresses that 25 years of bipartisan effort have built the US-India relationship, and now is the time to solidify it further.

Keshap suggested a conversation between leaders could help resolve the issue and lead to reasonable accommodations beneficial for both countries. He warned that failing to reach an agreement would be regrettable, given the strategic importance of the US-India partnership.

He advocated for productive negotiations to strike a deal that works for both India and the US, and acknowledged the significance of the American market for India and the need for a balanced agreement.

"...What we need to figure out is how we can put the US-India relationship on a firm footing. We have 25 years of bipartisan effort in America and India to build the relationship to where it is. We need to keep building that relationship. I have put a very significant chunk of my professional life, along with thousands of others in Delhi, Washington and elsewhere in to building this relationship. Now is the time for sobriety; it's the time to think through what it would take to close this deal. I think there has been a lot of discussion between Delhi and Washington...I think the time has come to pick up the phone and talk at the leader level and basically come to reasonable accommodations which is what leaders can do when they negotiate productively and strike a deal that's good for India, for America. In this regard, the American market is important...We have future together to work on AI, semiconductors, defence production that is critical to future of the free world. If we fumble this negotiation at the goal line, we are all going to live to regret it...," said Keshap.

The tariffs have made both American and Indian companies nervous, highlighting the need for predictability in business dealings.

Keshap expressed that the White House is growing impatient with the ongoing trade negotiations between the US and India. With the August 8 deadline looming, Keshap said the US wants to finalise the deal soon, especially since India was the first to initiate discussions on trade agreements.

Keshap noted that the US has settled trade agreements with other countries like the EU, Japan, Indonesia, Vietnam, South Korea, and possibly China, contributing to the sense of impatience. Despite the impatience, Keshap emphasised that India is important to the US, and the desire to wrap up the negotiations stems from this significance.

"I think there is clearly a sense of impatience coming from the White House. India was the first mover on all of these trade deals. But in the intervening months of negotiations, we have seen Agreements settled between the US and the EU, Japan, Indonesia, Vietnam, South Korea and possibly also a deal with China. So, I think there is impatience and there is a desire to wrap it up because India is important and so you are getting a lot of this signalling of impatience..."

A finalised trade deal could boost the US-India relationship, fostering cooperation in areas like technology, defence, and the economy. A successful agreement would unlock the potential for increased trade between the two nations, aiming for a $500 billion two-way trade volume annually. (ANI)

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