UK accelerates free trade talks with India in response to US tariffs

The UK government is set to fast-track negotiations with India on a free trade agreement (FTA) to strengthen its global trade partnerships following the recent imposition of US tariffs. 

On April 9, UK Chancellor of the Exchequer Rachel Reeves will lead an economic and financial dialogue with Indian officials, aiming to intensify efforts towards finalizing the deal, Caliber.Az reports via foreign media.

The UK and India have been working on the FTA since January 2022. Negotiations, which were paused last summer due to the UK’s election campaign, resumed in February. According to UK government statistics, trade turnover between the two nations currently stands at approximately 41 billion pounds ($53 billion).

Both countries see significant potential in expanding this relationship, with India being a key market for British goods and services. The UK’s focus on strengthening trade ties with India comes amidst a broader strategy to secure new deals globally. The UK government is also seeking to establish a new trade agreement with Australia. 

UK’s Prime Minister Keir Starmer has acknowledged the rise of protectionist measures in countries like the US but reaffirmed that the UK remains committed to the principles of free trade.

The move comes on the heels of US President Donald Trump’s announcement on April 2, imposing tariffs on products from 185 countries and territories, excluding Russia. For the UK, the US has set tariffs at 10 per cent, which Trump described as the "minimum" rate. Moreover, on April 3, the US introduced a 25 per cent tariff on all imported vehicles, further complicating the global trade landscape.

By Naila Huseynova