- The United States proposes new 12.5% import tariffs on India.
- The United States and India reach an initial agreement in February.
- The first tranche of the trade deal is expected to be concluded by July.
India would also seek assurances from the United States that it will not be subject to additional tariffs in the future after the deal, the official said.
India is pushing for new preferential tariffs from the United States as part of negotiations to finalize an interim trade deal with Washington, an Indian trade official said on Monday.
The United States and India reached initial agreement on a trade deal in February, but negotiations slowed after US President Donald Trump’s sweeping tariff measures were struck down by the US Supreme Court.
The United States has since proposed an additional 12.5% tariff on imports from India and other countries, due to what Washington says is the use of forced labor in those countries. He is also considering imposing a separate tariff on India, saying India has excess capacity in sectors such as textiles and exports too much to the United States, hurting American industry.
“Once we have these tariffs, we can finalize a trade deal with the United States. But obviously the rate has to be competitive with our direct competitors,” the Indian trade official, who spoke on condition of anonymity, told reporters.
India would also seek assurances from the United States that it will not be subject to additional tariffs in the future after the deal, the official said.
The official did not wish to be named because negotiations between the two countries on the agreement are confidential. India’s commerce ministry did not immediately respond to an emailed request for comment.
Bilateral trade talks gained momentum last week as a US delegation led by Deputy US Trade Representative for South and Central Asia Brendan Lynch held three days of talks with Indian trade officials in New Delhi.
Last week, Indian 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.
