- The US proposes a new import tariff of 12.5% on India.
- US, India reach initial agreement in February.
- The first tranche of the trade pact is expected to be completed in July.
India will also seek an assurance from the US that it will not be subject to additional tariffs in the future after the deal, the official said.
India is pushing for favorable new tariffs from the United States as part of talks to finalize an interim trade deal with Washington, an Indian trade official said on Monday.
The US and India reached an initial agreement on a trade deal in February, but talks stalled after US President Donald Trump’s sweeping tariff measures were struck down by the US Supreme Court.
The US has since proposed an additional 12.5% tariff on imports from India and other countries because of what Washington says is those countries’ use of forced labour. It is also looking at imposing a separate tariff on India, arguing that India has overcapacity in industries such as textiles and exports too much to the US, hurting US industry.
“Once we have that tariff, we can finalize a trade deal with the US, but of course the rate has to be competitive with direct competitors,” the Indian trade official, who spoke on condition of anonymity, told reporters.
India will also seek an assurance from the US that it will not be subject to additional tariffs in the future after the deal, the official said.
The official did not want to be named as talks between the two nations about the deal are confidential. India’s commerce ministry did not immediately respond to an emailed request for comment.
Bilateral trade talks picked up steam last week when a US delegation led by Assistant US Trade Representative for South and Central Asia Brendan Lynch held three days of talks with Indian trade officials in New Delhi.
Last week, India’s Commerce Minister Piyush Goyal said the two sides were moving quickly toward finalizing the first tranche of a bilateral trade deal that could be concluded by mid-July.
