India will prioritise its interests and negotiate with US: Nirmala Sitharaman amid Trump's tariff threats

At an event in Visakhapatnam, Sitharaman said tariff is a "legitimate instrument" as per the World Trade Organization (WTO) framework but both the countries- India and the US- will safeguard their interests on the negotiating table.

Sitharaman said, "Tariff is a legitimate instrument, a country will levy... It is consistent with the WTO framework."

"Now, on the question of bilateral relationship with the country and the tariff discussions between the two countries are concerned, both will take care of their individual interests. We will keep India's interest on the top and negotiate with them," the Finance Minister added.

Sitharaman said Union Commerce Minister Piyush Goyal has gone to the US to hold discussions with the White House officials on tariff.

"Tariff is something the US President has been speaking about. The Commerce Minister (Piyush Goyal) has already gone to the US (to) engage with US officials, including the United States Trade Representative (USTR)," she said as quoted by Hindustan Times.

"We will have to see how the Commerce Ministry handles negotiations with the US to ensure that India’s interests are well-represented," the Finance Minister added.

Trump on Wednesday reiterated that the reciprocal tariffs will come into effect on April 2.

Analysts have warned that reciprocal duties could bring a broad tariff hike to emerging market economies such as India and Thailand, which tend to have higher effective tariff rates on US products.

Countries such as South Korea that have trade deals with Washington are less at risk from this move, according to analysts.

Though Trump is fond of Indian Prime Minister Narendra Modi, the US President has often called India a "very big abuser" on trade.

Even during a joint press conference with Modi in Washington earlier this month, Trump expressed his displeasure over the tariffs India levy on American goods.