Key facts
- India is seeking preferential tariffs from the U.S. to finalize an interim trade deal.
- Negotiations are linked to the outcome of a U.S. tariff probe concerning forced labor and excess industrial capacity.
- India desires assurance against future U.S. tariff impositions.
- Bilateral trade talks have accelerated, with a potential deal conclusion by mid-July.
- The U.S. has proposed a 12.5% tariff on imports from India and other countries.
India is actively pursuing preferential tariffs from the United States as a condition for finalizing an interim trade agreement, according to an Indian trade official. The negotiations have gained momentum, with both sides aiming to conclude the first part of a bilateral trade deal by mid-July.
Discussions are closely tied to the conclusion of a U.S. tariff probe. Washington has proposed an additional 12.5% tariff on imports from India, citing concerns over forced labor and what it describes as India's excess industrial capacity, particularly in textiles, which allegedly harms U.S. industry. The Indian official emphasized that the final tariff rate must be competitive compared to those imposed on rival nations.