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.
NEW DELHI: Amid the ongoing discussions between India and the US in Washington, India has sought the full exemption from the additional 26 per cent tariff on domestic goods, especially in agriculture and labour-intensive sectors such as textiles and leather. It is, however, expected that the government will announce an interim trade deal before July 8, with New Delhi, an official source said on Wednesday.
Commerce and industry minister Piyush Goyal was there in Washington earlier this week to reportedly clinch a 'positive tariff deal' with the US where he held several meetings with his counterparts US trade representative (USTR) Jamieson Greer and US commerce secretary Howard Lutnick. “Talks are moving positively. Before July 8, we are looking at concluding an interim deal before the first tranche. It will include goods, non-tariff barriers, and areas of services also like digital,” the source said.
The source further said that India is always making its effort to protect its sensitive sectors which may entail some quota or minimum import price, mostly on the sectors including agricultural goods and dairy products. “We are trying that the 26 per cent additional duty and the 10 percent baseline tariff should not be there for India,” the official said, adding that India is seeking concessions for its labour-intensive sectors such as textiles and leather as well.
The minister-level meetings were followed by the deliberations between chief negotiators of the two countries, which will continue until May 22. 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.
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. However, the officials from New Delhi and Washington are looking to take advantage of the 90-day tariff pause window to advance the talks.
