India asks US to drop 10% universal tariff as part of trade deal, says report

India asks US to drop 10% universal tariff as part of trade deal, says report

India has sought a binding commitment from US on going back to its pre-April 2 tariff levels for India's labour intensive exports as part of their proposed bilateral trade agreement (BTA), Business Standard reported citing people familiar with the matter.

The binding commitment would include the removal of the universal 10 percent tariff imposed by US President Donald Trump-led administration, the report said. The commitment sought from US to revert back to the original tariffs in single digits will give a competitive edge to India's exports over the other nations, the report cited an unnamed government official as saying.

India is also seeking a commitment from US that it will completely eliminate tariff on labour-intensive goods like apparel, leather, footwear, gems and jewellery. However, US has informed that it doesn't have the Congressional mandate to make such tariff cuts, the report added.

Moneycontrol couldn't independently verify the report.

The next round of talks between India and the United States for an interim or 'mini deal' began in New Delhi on June 5 – a day when the fresh 50 percent tariffs on steel and aluminium announced by US President Donald Trump kicked in.

New Delhi is navigating the deal in a "measured and expeditious" manner as multiple developments – ranging from a further hike in metal tariffs, to rulings by US courts, to India formally objecting to some of the Trump tariffs at the World Trade Organisation (WTO) – have made negotiations far more complex now.

"The last round of talks happened in Washington until May 22 and in just two weeks, the situation has become far more complex. There is a lot of uncertainty now. But India has to find pathways which are good for the country," said an official from the commerce ministry who is privy to the talks.