India seeks preferential tariffs from the US to push for a temporary trade agreement

An Indian trade official stated on Monday that India is seeking new preferential tariff terms from the United States in negotiations to finalize a temporary trade agreement with Washington.

The United States and India reached a preliminary consensus on a trade agreement in February this year, but negotiations have slowed down after President Trump's comprehensive tariff measures were overturned by the US Supreme Court.

Afterwards, the United States proposed to impose an additional 12.5% tariff on imported goods from India and other countries. The United States is still considering imposing another tariff on India, claiming that India has overcapacity in industries such as textiles and exports too many goods to the United States, which damages domestic industries.

As long as we can determine this tariff, we can finalize the trade agreement with the United States. However, obviously, this tariff rate must be competitive compared to direct competitors, "said the Indian trade official.

The official also stated that India will seek assurance from the United States that no additional tariffs will be imposed on India in the future after reaching an agreement.

In the past week, bilateral trade negotiations have accelerated, with a US delegation led by Assistant Trade Representative for South and Central Asia Brendan Lynch holding three-day talks with Indian trade officials in New Delhi.

Last week, Indian Minister of Commerce and Industry Goyal stated that both sides are rapidly advancing the first phase of the bilateral trade agreement, which is expected to be reached by mid July.