'Tariff action relating to the excess-capacity investigation will be even more susceptible to judicial overturn.'
India anticipates a reduction in the United States' proposed tariffs on Indian goods under the Section 301 investigation, following New Delhi's recent notification to restrict the import of products made with forced labour.
India and the United States are committed to finalising an interim trade agreement, despite recent challenges including the US imposing a blanket 10 per cent surcharge and India's decision to wait for a new global tariff architecture. The US Trade Representative's annual report highlights India's maintained high import tariffs and various non-tariff barriers across several sectors.
India is waiting for assurance from the US on comparative advantage over other economies under the deal.
The US Trade Representative has proposed an additional 12.5 per cent duty on goods from 54 countries, including India, citing their failure to prohibit the import of goods produced with forced labour. India has denied the allegations and called for the matter to be resolved through bilateral trade negotiations.
The United States has implemented a 10 per cent tariff on goods imported from India and 16 other countries, citing efforts to combat forced labour in production.
India has strongly refuted claims by the United States Trade Representative (USTR) regarding excess capacity in its steel and textile sectors, arguing that the nation's significantly low per capita consumption of these products contradicts such assertions, according to Amitabh Kumar, Additional Secretary in the Ministry of Commerce.
India is among six countries on the priority watch list in a US report addressing the protection and enforcement of intellectual property rights.
Greer said that India has taken down some digital services taxes and is moving tariffs down.
The United States and India are on the verge of finalising a landmark bilateral trade deal, aiming to boost trade to USD 500 billion by 2030, according to US Deputy Assistant Secretary of State Bethany Poulos Morrison. The agreement seeks to open India's 1.4 billion-strong market to American goods on reciprocal terms, with ongoing high-level discussions to recalibrate the pact after recent changes in US tariff policy.
The United States Trade Representative (USTR) has expressed concerns that India's Digital Personal Data Protection (DPDP) Act, particularly the lack of a deemed consent mechanism for credit information companies, and the Information Technology (IT) Rules of 2021, along with frequent internet shutdowns, could negatively impact the ability of US companies to operate and trade in India.
American industry groups sought punitive tariffs on Indian goods at USTR hearings, while Indian officials defended the country's manufacturing growth as demand-led and WTO-compliant.
India may press for an automatic review mechanism in its proposed interim trade deal with the United States (US), mirroring a sunset clause introduced by the European Parliament in its trade agreement with Washington, people aware of the negotiations said. The European Parliament last week approved the EU-US trade deal but inserted a sunset clause requiring the arrangement to expire on December 31, 2029, unless both sides agree to extend it.
India and the United States have reviewed progress on a proposed interim bilateral trade agreement, discussing market access, digital trade, and non-tariff barriers, as they race to finalise a deal before a temporary 10 per cent US tariff regime expires on July 24.
Indian benchmark indices, Sensex and Nifty, closed lower, primarily due to a sharp sell-off in IT stocks, a fresh surge in crude oil prices, and sustained outflows from foreign institutional investors. The Sensex dropped over 300 points, while the Nifty declined by 77.95 points.
LIC said USTR's views are based on an incomplete understanding of Indian insurance regulation and LIC's functioning.
Indian equity benchmark indices Sensex and Nifty experienced a significant tumble in early trade, with the Sensex tanking nearly 700 points, driven by uncertainty surrounding US-Iran negotiations, a fresh spike in crude oil prices, and persistent foreign fund outflows.
The United States Trade Representative (USTR) office on Wednesday launched a sweeping investigation into manufacturing and industrial practices in 16 economies, including India, citing concerns over what it calls 'structural excess capacity' that could distort global trade. Announcing the move on a White House press call, Jamieson Greer said the probe would be conducted under Section 301 of the Trade Act of 1974, one of Washington, DC's most powerful trade enforcement tools.
The US Trade Representative noted that India's average applied tariff rate stood at 17% per cent, the highest of any major world economy.
A US trade representative described India as a 'tough nut to crack' during trade agreement negotiations in Washington, highlighting India's protection of its agricultural markets and the ongoing discussions on specific commodities.
Chief negotiators from India and the US are set to begin three-day talks in Washington to recalibrate the bilateral trade agreement (BTA) framework, following significant changes in the US tariff landscape, including a new 10 per cent tariff imposed on all countries.
India and the US have reported positive progress in recent trade talks in Washington, agreeing to maintain engagement to finalise a bilateral trade agreement, which now requires recalibration following new US tariffs.
The USTR report, released just ahead of the US' April 2 deadline for implementing reciprocal tariffs, has also cited high tariffs and price caps, which have not increased in line with inflation, as key obstacles for US businesses.
India and the US have finalised the terms of reference outlining the roadmap for negotiations of the proposed Bilateral Trade Agreement (BTA), according to a statement issued by the US. US Trade Representative (USTR) Jamieson Greer said that these ongoing talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm US workers.
The US Trade Representative's office removed a social media post featuring a map of India that showed the entire region of Jammu and Kashmir, including Pakistan-occupied Kashmir, as well as the Aksai Chin region as part of Indian territory.
Talks on the proposed trade deal between India and the United States will resume after the year-end holidays, coinciding with Sergio Gor -- a close aide of American President Donald Trump -- taking charge as the US Ambassador to India in early January, according to a person privy to the development.
'Engaged in very fruitful discussions to expand our trade and economic partnership.'
India's exports to the US contracted 8.6 per cent to $6.3 billion in October, while imports rose 13.9 per cent to $4.5 billion leading to a trade surplus of $1.8 billion during the month.
'I don't think we should ever negotiate with deadlines or hard stops because we tend to make mistakes then.'
Commerce and Industry Minister Piyush Goyal announced that an interim trade agreement between India and the US is likely to be signed in March and operationalised in April, with chief negotiators meeting in Washington to finalize the details.
The US said India will lower tariffs on a "vast array" of American industrial and agricultural goods, such as "fruits, vegetables", to zero per cent under the trade deal announced by President Donald Trump.
The rupee plunged 38 paise to close at an all-time low of 90.32 against the US dollar on Thursday amid uncertainty over the India-US trade deal. Forex traders said the rupee is expected to trade with a negative bias as the delay in the trade deal between India and the US may continue to dent investor confidence.
'...but I would not like to put a timeline to it'
'A deal will only be possible if India stops buying Russian oil -- but even then, New Delhi must not compromise its core red lines.'
Very sensitive items -- such as apples, which carry political weight and are closely tied to farmer interests in states like Himachal Pradesh and Uttarakhand -- may face restricted concessions.
'Trump does have a master plan in mind to put pressure on India with the additional tariff of 25 per cent to get Modi to persuade Russian President Vladimir Putin to freeze the Ukraine war.' 'It has not worked so far. By end-September only we'll know for sure the future trajectory of India's oil purchases from Russia,' observes Ambassador M K Bhadrakumar.
As in-person negotiations between India and the US kickstarted on Wednesday, Treasury Secretary Scott Bessent said he expected India to strike the first bilateral trade deal to avert President Donald Trump's reciprocal tariffs.
The US on Thursday raised concerns over India's Personal Data Protection (PDP) Bill and draft non-personal data governance framework, claiming these could potentially threaten innovation and economic growth. In its latest 'Special 301' Report, the US Trade Representative (USTR) kept India on the priority watch list, maintaining the country remains one of the world's most challenging major economies with respect to protection and enforcement of intellectual property (IP). In December 2021, a joint parliamentary committee released a report recommending changes to the PDP Bill, 2019, that could undermine important IP protections in India.
The US wants India to recognise internationally accredited labs, harmonise labelling requirements and the validity period of test reports and certification with global practices, and eliminate retesting requirements.
Trump's sweeping tariffs and penalties on China-built ships have turned global shipping into the front line of economic war, observes Shyam G Menon.
