Latest news with #BilateralTradeAgreement
Time of India
13 hours ago
- Business
- Time of India
FIEO worried over US tariff hikes on steel, aluminium
The Federation of Indian Export Organisations ( FIEO ) Saturday raised concerns about potential disruption to India's steel and aluminium exports to the US after President Donald Trump's announcement of a plan to double import tariffs on steel and aluminium to 50 per cent from 25 per cent. They particularly fear that the exports of value-added and finished steel products and auto-components, stainless steel pipes, and structural steel components could be hurt. This potential increase comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security. "These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," said SC Ralhan , president, FIEO. India exported approximately $6.2 billion worth of steel and finished steel products to the US in FY25 including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing. Exporters said that though the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. India and the US are negotiating a Bilateral Trade Agreement and exporters said that the move will complicate the talks. "It's unfortunate that while BTA negotiations are going on, such unilateral tariff increases should be done. It only makes the work of the negotiators much more difficult and complicated. This will definitely impact the engineering exports, which are about $5 billion under this head," Pankaj Chadha, chairman EEPC India. Chadha added that since the UK has been given exemption from Section 232, the same exemption should also be given with TRQ restrictions to India. "We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly 25 per cent additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer," Ralhan said. On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25 per cent and 10 per cent ad valorem tariffs respectively on such products with effect from March 23, 2018. On February 10, 2025, it revised the safeguard measures on imports of steel and aluminium articles, effective from March 12. New Delhi said that the US failed to notify the WTO Committee about a decision to apply safeguard measures and as an affected member with significant export interest, it has requested consultations with Washington and proposed retaliation against the measure.
Hans India
15 hours ago
- Business
- Hans India
India-US Trade Deal May Be Coming Soon, Says US Commerce Secretary Lutnick
US Secretary of Commerce Howard Lutnick announced during negotiations for a trade deal between India and the US that both countries have identified a mutually beneficial agreement. At the US-India Strategic Partnership Forum Annual Leadership Summit on Monday Lutnick revealed that the United States is attempting to conclude trade deals within one month which deviates from the standard two to three-year timeline typical between trading nations. 'Earlier countries get a better deal. That's the way it is. I think India is exerting significant effort to become one of the first countries which I find commendable.' Our two countries maintain a strong bilateral relationship. Lutnick expressed his belief in an upcoming beneficial trade agreement between the two nations through his message on X. During the Summit he stated "I am a great fan of India and the government people know that to be true.' After Lutnick's announcement of an impending trade deal between India and US Kumar Mangalam Birla, the Aditya Birla Group Chairperson, responded by saying, 'He (US Secretary of Commerce Howard Lutnick) showed great positivity regarding the India-US relationship and future cooperation between both nations.' He mentioned that Prime Minister Modi and President Trump have strong friendship ties which helps their nations collaborate effectively. Trade talks between India and the US will take place on June 5-6. The US delegation will visit India from June 5 to June 6 for Bilateral Trade Agreement talks according to government sources speaking to ANI. The sources report that bilateral trade negotiations between the two countries are moving forward positively. The report indicated India and the US will finalize the first section of the awaited BTA before July. The Department of Commerce from India joined representatives from the Office of the US Trade Representative for India-US BTA discussions in Washington, DC between April 23 and April 25, 2025.
Time of India
15 hours ago
- Business
- Time of India
US Commerce Secretary Hints at Breakthrough
US Secretary of Commerce Howard Lutnick has strongly hinted at an imminent India-US trade deal, stating that both nations have 'found a place that works.' Speaking at the US-India Strategic Partnership Forum Annual Leadership Summit, Lutnick emphasized the urgency and optimism surrounding the deal. He praised India's proactive approach and suggested that the agreement may close within a month, an unusually fast timeline for international trade pacts. Industry titan Kumar Mangalam Birla echoed the optimism, highlighting the synergy between leaders like PM Modi and President Trump. A US delegation is scheduled to visit New Delhi on June 5-6 to finalise terms of the Bilateral Trade Agreement, as per government sources.#indiaustradedeal #howardlutnick #moditrump #usindiaties #bilateraltradeagreement #indiaeconomy #uscommerce #kumarmangalambirla #strategicpartnershipforum #tradediplomacy #junetradetalks #btaindiaus #toi #toibharat
India Today
20 hours ago
- Business
- India Today
Trade deal with India likely in not-too-distant future: US Commerce Secretary
US Commerce Secretary Howard Lutnick has expressed strong optimism regarding the imminent finalisation of a trade deal between India and the United States, saying that an agreement could be reached in the "not-too-distant future".Secretary Lutnick highlighted that both nations have found a common ground that "really works for both countries," suggesting a breakthrough in long-standing negotiations.'You should expect a deal between the United States and India in the not-too-distant future... When they put the right person in India, put the right person on the other side of the table, and we've managed (that), I think," Lutnick said at the US-India Strategic Partnership Forum's Leadership Summit in The two countries intensified trade deal discussions after US President Donald Trump recently announced reciprocal tariffs on nations accused of causing trade imbalances, including India. However, the tariffs were later paused for 90 days, except for remarks, delivered at the eighth edition of the US-India Strategic Partnership Forum (USISPF) in Washington, underscore a significant push by the Trump administration to expedite trade US Commerce Secretary's remarks came just days after reports suggested that India is seeking a complete exemption from the additional 26 per cent tariff imposed by the United States on its goods, as both sides race to finalise an interim trade deal before July 8. The remarks also follow President Trump's claim that India had offered the US a tariff-free trade deal, a statement New Delhi rejected, clarifying that discussions are still ongoing to reach a win-win Monday, Commerce Minister Piyush Goyal said India and the US desire to give preferential market access to each other's businesses and teams of both countries are working together on the proposed bilateral trade agreement."Both countries are committed to work together, both countries desire to give preferential access to each other's businesses and we are working towards the bilateral trade agreement," Goyal said. In February, US President Trump and Prime Minister of India Narendra Modi announced plans to negotiate the first tranche or phase of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall (September-October) of 2025. It is aimed at more than doubling the bilateral trade to USD 500 billion by 2030 from the current level of USD 191 billion.
Indian Express
a day ago
- Business
- Indian Express
Lower duty on edible oils, nuts; target growth in spice, rice in US deal: Niti Aayog
India should offer concessions on agricultural products from US such as edible oils and nuts where domestic supply gaps exist, and explore duty concessions to boost high-performing exports — including shrimp, fish, spices, rice, tea, coffee, and rubber — in the US market during the Bilateral Trade Agreement (BTA) negotiations, a Niti Aayog working paper has argued. The need for calibrated negotiations on agricultural trade relations between India and the US arises as India has traditionally maintained relatively high tariffs on politically sensitive agricultural sectors to protect farmers, but the US, under President Donald Trump, has been aggressively pushing for greater market access and lower tariffs, posing a challenge for developing countries such as India. The working paper dated May said India can offer some concessions to the US in the 'import of soybean oil' to meet US demands to reduce the trade imbalance, without harming domestic production, as India is the largest importer of edible oil in the world and the US has a huge export surplus of soybean. 'Import soybean seed from US 'We should also explore the option of importing soybean seed and using it for extracting oil in the coastal areas, then selling the oil in the domestic market and exporting the meal, for which there is adequate overseas demand. This will avoid genetically modified (GM) feed entering the Indian market,' the paper, authored by Senior Adviser at NITI Aayog, Raka Saxena, and Member of NITI Aayog, Ramesh Chand, said. 'Similarly, corn may be imported for ethanol blending, and its by-products — like Distiller's Dried Grains with Solubles (DDGS) — can be entirely exported to avoid GM feed in the country. US corn is cheaper and can be used to meet India's biofuel targets without disrupting local food and feed markets,' the paper said. Notably, soybeans and corn are among the US top exports to China, where a trade war may affect agricultural trade between the two countries. According to a Reuters report, US soybean exports may drop 20 per cent and prices could plunge if the United States and China fail to resolve their trade dispute, limiting US soybeans from accessing their largest market. Ease US apple imports 'Indian producers already enjoy supply advantages in commodities like rice and pepper. High tariffs on such products by India, which are regularly exported by the country, can be easily lowered or even removed in the bilateral trade accord. Such tariffs are not relevant for trade with countries like the US,' the paper said. The Niti Aayog paper said India can consider lower tariffs on agricultural commodities where either domestic production is small or imports do not compete with domestic production due to different quality grades and seasons. 'For example, US apples sell at a premium price in Indian retail markets due to different quality, long shelf life, and off-season availability.' Boost exports of fish, spices & coffee 'India should negotiate more access to the US market for high-performing exports like shrimp, fish, spices, rice, tea, coffee, and rubber. India earns approximately $5.75 billion annually from agri-exports to the US. Expanding this through duty waivers or TRQs should be part of trade talks,' the paper said. The authors said that US is expected to remain a big market for export of surplus food from India and all efforts need to be made to keep favorable environment for export to US. 'This should include strategic opening for US imports into India to achieve larger gains in exports. The ongoing negotiations between the two countries for a bilateral trade accord seem to be the best option for resetting long term trade relationships'. 'Export basket should emphasize both, traditional products like fishery and rice sold in large volume and a large number of high value products, differentiated products, ethnic products, attribute-based products, health foods, processed food etc. which are individually small but cumulatively quite large,' the paper said. In the last 10 years, India's agricultural exports to the US grew nearly fivefold, from $1.18 billion to $5.75 billion and the share of the US in India's total agricultural exports saw a slight decline, dropping from 11.5 per cent in 2004 to 9.8 per cent in 2024. Meanwhile, India's agricultural imports from the US increased even faster, rising from $291 million in 2004 to $2,217.9 million in 2024. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
