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Time of India
7 days ago
- Business
- Time of India
India pushes to dodge Trump's 26% tariff as US officials head to Delhi for last-lap trade deal talks
NEW DELHI: A high-level US trade delegation is expected to land in India in the coming weeks for what could be the final round of talks on the proposed interim trade agreement between the two countries, multiple sources said, reported PTI. The visit comes with a ticking clock, with both sides aiming to seal the deal before July 9, when a temporary suspension on steep US tariffs runs out. India is pushing hard for full exemption from the 26% reciprocal tariff the US imposed on April 2, currently suspended for 90 days. But while the countdown continues, Indian exports still face a 10% baseline tariff, and New Delhi is keen to get that lifted too. 'The US team is expected in India for trade talks. Negotiations are moving at a faster pace,' one official said, signaling urgency on both sides. What's been done so far? India's chief negotiator Rajesh Agrawal, special secretary in the department of commerce, returned from a four-day visit to Washington last week. There, he held direct talks with his US counterpart on the contours of the interim deal. Meanwhile, commerce and industry minister Piyush Goyal was also in Washington. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo In what's being viewed as a diplomatic nudge, he met US Commerce Secretary Howard Lutnick twice during his stay, lending political weight to what was otherwise a trade-heavy week. So what's the hold-up? Under current US law, any move to lower tariffs below MFN (Most Favoured Nation) levels needs approval from US Congress. However, the US administration can remove reciprocal tariffs unilaterally, something that's on the table not just for India but for other countries too. Why it matters This is not just about lifting levies on mangoes and motorcycles. The US has been India's top trading partner for four years straight, with bilateral trade at $131.84 billion in 2024–25. The US now accounts for 18% of India's exports, 6.2% of its imports, and over 10% of its total trade. The sticking point? A $41.18 billion goods trade surplus in India's favor, up from $35.32 billion last year. Washington's not thrilled. But Delhi is unfazed, focusing instead on securing tariff relief before the July cliff. Both sides have already agreed to finalise Phase 1 of a broader bilateral trade deal by fall (September–October). The two trading partners look to more than double bilateral trade to USD 500 billion by 2030. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
23-05-2025
- Business
- Business Standard
Piyush Goyal meets US commerce secretary to discuss proposed trade pact
Commerce and Industry Minister Piyush Goyal on Friday held his second meeting with US Commerce Secretary Howard Lutnick in Washington to discuss the proposed bilateral trade agreement currently under negotiation between the two countries. On May 20 also, Goyal held a meeting with Lutnick to expedite the talks on the first phase of the trade pact. "Held a constructive meeting with Secretary @HowardLutnick for a mutually beneficial trade agreement. Committed to enhancing opportunities for our businesses and people," Goyal said in a post on X. The meeting assumes significance as both the countries are looking at finalising an interim trade pact by July 8. The four-day discussions between the chief negotiators have also concluded in Washington on May 22. In the interim trade deal, New Delhi is pushing for full exemption from the 26 per cent reciprocal tariff on Indian goods. The US on April 2 imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days till July 9. However, the 10 per cent baseline tariff imposed by America remains in place. Due to the 90-day suspension of the 26 per cent additional import duty, Indian exporters are at present paying just 10 per cent baseline tariffs, instead of 26 per cent earlier proposed. At present, the Trump administration requires approval from the US Congress to bring tariffs below the MFN (most favoured nation) rates. But the administration has the authority to remove the reciprocal tariffs imposed on a number of countries, including India. India may look at certain commitments from the US on the duty concessions for its labour-intensive sector in the first tranche of the proposed bilateral trade agreement (BTA). Both countries have fixed a deadline to conclude the first phase of the pact by fall (September-October) of this year to more than double bilateral trade to USD 500 billion by 2030. To boost bilateral trade, India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas in the proposed pact with America. On the other hand, the US wants duty concessions in sectors like certain industrial goods, automobiles (electric vehicles in particular), wines, petrochemical products, dairy, and agriculture items such as apples, tree nuts and GM (genetically modified) crops. While the import of GM crops from the US continues to remain a non-starter due to regulatory norms in India, New Delhi is open to import of non-GM products like Alpha alpha hay (a kind of cattle feed). The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country's total merchandise trade. With America, India had a trade surplus (the difference between imports and exports) of USD 41.18 billion in goods in 2024-25. It was USD 35.32 billion in 2023-24, USD 27.7 billion in 2022-23, USD 32.85 billion in 2021-22 and USD 22.73 billion in 2020-21. The US has raised concerns over this widening trade deficit.
The Hindu
23-05-2025
- Business
- The Hindu
Piyush Goyal meets U.S. Commerce Secretary in Washington to discuss proposed trade pact
Commerce and Industry Minister Piyush Goyal on Friday (May 23, 2025) held his second meeting with U.S. Commerce Secretary Howard Lutnick in Washington to discuss the proposed bilateral trade agreement currently under negotiation between the two countries. On May 20, 2025, Mr. Goyal held a meeting with Secretary Howard Lutnick to expedite the talks on the first phase of the trade pact. "Held a constructive meeting with Secretary @HowardLutnick for a mutually beneficial trade agreement. Committed to enhancing opportunities for our businesses and people," Mr. Goyal said in a post on X. Held a constructive meeting with Secretary @HowardLutnick for a mutually beneficial trade agreement. Committed to enhancing opportunities for our businesses and people. 🇮🇳 🇺🇸 — Piyush Goyal (@PiyushGoyal) May 22, 2025 The meeting assumes significance, as both the countries are looking at finalising an interim trade pact by July 8, 2025. The four-day discussions between the chief negotiators have also concluded in Washington on May 22, 2025. In the interim trade deal, New Delhi is pushing for full exemption from the 26% reciprocal tariff on Indian goods. The U.S. on April 2, 2025, imposed an additional 26% reciprocal tariff on Indian goods but suspended it for 90 days till July 9, 2025. However, the 10% baseline tariff imposed by America remains in place. Owing to the 90-day suspension of the 26% additional import duty, Indian exporters are at present paying just 10% baseline tariffs, instead of 26% earlier proposed. At present, the Trump administration requires approval from the U.S. Congress to bring tariffs below the MFN (most favoured nation) rates. But the administration has the authority to remove the reciprocal tariffs imposed on a number of countries, including India. India may look at certain commitments from the U.S. on the duty concessions for its labour-intensive sector in the first tranche of the proposed Bilateral Trade Agreement (BTA). Both countries have fixed a deadline to conclude the first phase of the pact by fall (September-October) of this year to more than double bilateral trade to $500 billion by 2030. To boost bilateral trade, India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas in the proposed pact with America. On the other hand, the U.S. wants duty concessions in sectors such as certain industrial goods, automobiles (electric vehicles in particular), wines, petrochemical products, dairy, and agriculture items such as apples, tree nuts, and GM (genetically modified) crops. While the import of GM crops from the U.S. continues to remain a non-starter owing to regulatory norms in India, New Delhi is open to the import of non-GM products such as Alpha alpha hay (a kind of cattle feed). The U.S. remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion. The U.S. accounts for about 18% of India's total goods exports, 6.22% of imports, and 10.73% of the country's total merchandise trade. With America, India had a trade surplus (the difference between imports and exports) of $41.18 billion in goods in 2024-25. It was $35.32 billion in 2023-24, $27.7 billion in 2022-23, $32.85 billion in 2021-22, and $22.73 billion in 2020-21. The U.S. has raised concerns over this widening trade deficit.
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First Post
22-05-2025
- Business
- First Post
India to sign interim trade deal with US by July 8 to avoid Trump's reciprocal tariffs: Report
India is seeking tariff concessions on its labour-intensive sectors like leather and textiles. Meanwhile, the Trump administration would need Congress's approval to reduce tariffs below the MFN (most favoured nation) rates read more India and the US will sign an interim trade deal by July 8, just in time before the 90-day pause on reciprocal tariffs ends. The development comes after Union Commerce Minister Piyush Goyal visited Washington last week to hold discussions with his counterparts on the trade deal. An official told the Indian Express that signing the interim deal with the US can ensure that New Delhi averts the 26 per cent reciprocal duties imposed on Indian goods. STORY CONTINUES BELOW THIS AD 'Talks are progressing positively. We are looking to conclude an interim deal before the first tranche (of tariffs) takes effect on July 8. It will cover goods, non-tariff barriers, and select areas of services, including digital trade. We are working to ensure that the 26 per cent additional duty and possibly the 10 per cent baseline tariff do not apply to India,' the official said. The official added that India is seeking tariff concessions on its labour-intensive sectors like leather and textiles. Meanwhile, the Trump administration would need Congress's approval to reduce tariffs below the MFN (most favoured nation) rates. What are India-US chalking out? The interim trade agreement is likely to include provisions on market access for industrial products, select agricultural goods, and the relaxation of non-tariff barriers such as India's quality control regulations, according to reports. As part of efforts to enhance bilateral trade, India is pushing for tariff reductions on a range of exports, including textiles, gems and jewellery, leather products, garments, plastics, chemicals, shrimp, oilseeds, grapes, and bananas. Meanwhile, the US has urged for lower tariffs on goods produced by sectors like automobiles (particularly electric vehicles), wines, petrochemicals, dairy, and agricultural goods like apples, tree nuts, and genetically modified (GM) crops. A 3-stage trade pact According to a report by Bloomberg, India is working on a trade deal with Washington, which will be planned in three stages. The deal could provide easier market access for industrial goods and certain agricultural products. It may also aim to ease trade barriers, including stringent quality control regulations. Officials from India told the news outlet that the second stage of the deal could entail a larger and more detailed agreement, likely to come into effect between September and November this year. STORY CONTINUES BELOW THIS AD The final phase of the deal—a comprehensive agreement—will require approval from the U.S. Congress and, according to officials, may not be completed until next year.
Indian Express
21-05-2025
- Business
- Indian Express
India set to sign interim US trade deal by July 8, before 90-day pause ends
INDIA IS likely to sign an interim trade deal with the US by July 8, when the 90-day pause window ends and reciprocal tariffs kick in. This, a government official said, will ensure New Delhi averts the 26 per cent retaliatory tariff imposed by the US on Indian goods. The confidence comes following Commerce and Industry Minister Piyush Goyal's visit last week to Washington, aimed at giving fresh impetus to the ongoing trade talks. The Indian delegation's visit was days after the United States and China agreed to dramatically de-escalate trade tensions and sign an agreement to reduce tariffs on each other. 'Talks are progressing positively. We are looking to conclude an interim deal before the first tranche (of tariffs) takes effect on July 8. It will cover goods, non-tariff barriers, and select areas of services, including digital trade. We are working to ensure that the 26 per cent additional duty and possibly the 10 per cent baseline tariff do not apply to India,' the official said. However, another official said that 10 per cent tariffs are likely to remain in place. Notably, the US chose to keep the 10 per cent baseline tariffs under its trade agreement with the UK, despite Washington having a trade surplus in goods. The official said India is seeking tariff concessions for its labour-intensive sectors, such as textiles and leather. However, any reduction in tariffs below the MFN (most favoured nation) rates would require approval from the US Congress under the current American trade laws. During the Indian delegation's visit, Goyal met US Trade Representative (USTR) Jamieson Greer and US Commerce Secretary Howard Lutnick. In a post on social media platform X, Goyal said he had held productive discussions with the US Commerce Secretary to expedite the first tranche of the bilateral trade agreement. According to a Bloomberg report, India is negotiating a US trade agreement in three tranches and expects to finalise the interim deal before July, when President Donald Trump's reciprocal tariffs are scheduled to come into effect. The interim deal is expected to cover areas including market access for industrial goods, certain agricultural products, and the easing of non-tariff barriers such as quality control standards being imposed by India, the agency reported. To boost bilateral trade, India is seeking tariff concessions for sectors including textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oilseeds, grapes, and bananas in the proposed agreement. The US is demanding lower tariffs in areas such as certain industrial products, automobiles (particularly electric vehicles), wines, petrochemicals, dairy, and agricultural goods like apples, tree nuts, and genetically modified (GM) crops. Earlier on May 15, US President Donald Trump said he had told Apple CEO Tim Cook that he does not want the company to expand its manufacturing operations in India, unless the output is intended for the domestic market. He further claimed that India had 'offered to drop all tariffs' on US goods. 'I had a little problem with Tim Cook yesterday. I said, 'Tim, you're my friend. I've treated you very well. You're coming here (to the US) with a $500 billion announcement, and now I hear you're building all over India. I don't want you building in India unless it's to serve the Indian market, because India is one of the highest tariff nations in the world',' Trump said following a meeting with business leaders during the US-Qatar economic dialogue. 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
