‘Everything on the table…’: India eyes duty cuts on both sides; seeks assurance Donald Trump-led US won’t impose additional tariffs after trade deal
India-US trade deal: With the Narendra Modi government and Donald Trump administration working to seal the first phase of the bilateral trade agreement at the earliest, India wants assurance that no further tariffs will be imposed. On April 2, the US President Donald Trump declared a reciprocal 26% tariff on Indian goods imports as part of global trade measures. These tariffs were suspended for 90 days until July 9, whilst maintaining the 10% baseline tariff. Both nations are working towards finalising the BTA before the deadline expires.
Trade Deal: India Seeks Guarantee From US
India has sought guarantees from the US against future tariff impositions by the Trump administration following the completion of the bilateral trade agreement (BTA).
The negotiations are nearing completion, with both nations optimistic about swift resolution.
India has requested benefits for sectors requiring substantial workforce, particularly leather and textiles.
"We have put everything on the table," a source told ET, emphasising India's desire for tariff stability post-agreement. Standard trade agreements incorporate provisions for renegotiation or compensation when partners increase tariffs, and India aims to include similar safeguards.
"This would ensure the agreement is ringfenced from prospective changes," another source stated.
Trade specialists unanimously support the inclusion of such a provision. "The BTA should be timebound and not in perpetuity," a trade policy specialist said. "India must insist on a clawback provision — that it will withdraw benefits if the US raises tariffs or goes back on any of its commitments."
Government representatives indicated that the United States needs to devise a strategy for tariff reduction, as India has requested concessions for industries including textiles and leather.
Whilst the Trump administration presently needs US Congress approval to reduce duties below most favoured nation (MFN) rates, it possesses the authority to eliminate reciprocal tariffs.
"We want preferential and sustained trade advantages and have left it to the US to decide the route it takes to reduce its tariff barriers—whether through the Trade Promotion Authority or by seeking Congressional approval," an official said.
