India has suggested the elimination of tariffs on steel, auto parts, and pharmaceuticals on a reciprocal arrangement, up to a specific import volume, during trade talks with the United States, according to sources knowledgeable about the discussions.
Once the proposed limit is surpassed, standard tariffs on these imported industrial goods would apply. The source also mentioned that these terms were put forward by Indian trade representatives who visited Washington late last month, aiming to accelerate progress on a bilateral trade agreement anticipated by autumn of this year.
The US and India are prioritizing certain industries to cement an initial trade agreement ahead of the conclusion of the 90-day suspension of US President Donald Trump’s retaliatory tariffs.
In return, Washington has urged India to address issues surrounding Quality Control Orders (QCOs), considered by the US as non-tariff barriers affecting its exports. These compulsory quality benchmarks, which both domestic and international producers must meet prior to selling goods in India, have been critiqued for their lack of transparency and perceived injustice.
To ease these concerns, India is open to re-evaluating its current QCOs in areas like medical devices and chemicals. Additionally, India has proposed a mutual recognition agreement with the US, under which both countries would acknowledge each other’s regulatory standards and practices.
Trump hinted on Sunday that several trade agreements might be finalized imminently, suggesting a potential reprieve for trading nations looking to circumvent increased US import duties. Asian countries, such as South Korea, Japan, Vietnam and India, are at the forefront in securing tentative agreements with the Trump administration. Meanwhile, Thailand has yet to meet the US representatives on the matter, following the abrupt cancellation late last month due to a new proposal from the Trump administration.
