Overview of US-India Trade Deal and Tariff Issues
The recent expansion of tariffs by US President Donald Trump has significant implications for ongoing trade negotiations between the US and India. This expansion includes products like patented drugs and heavy trucks, which were previously exempted from reciprocal tariffs.
Impact of Section 232 Tariffs
- Section 232 tariffs are already affecting India's steel and aluminium exports.
- There are concerns about further tariff expansions under Section 232.
- Section 232 investigations are increasing, impacting various sectors, from semiconductors to wind turbines.
- Simon Evenett notes that these tariffs prioritize security concerns and are legally challenging to contest in courts.
India's Response
- New Delhi is approaching the WTO to contest sectoral tariffs.
- India has indicated potential retaliation, citing non-compliance with the Agreement on Safeguards by the US.
- Minister of State for Commerce and Industry, Jitin Prasada, highlights the US's refusal to discuss tariffs at the WTO.
Progress in Trade Negotiations
- Ongoing discussions aim to conclude a mutually beneficial trade agreement.
- Meetings have been conducted with US Trade Representative Jamieson Greer and Ambassador Sergio Gor.
- The focus is on promoting trade and investment between India and the US.
In summary, the expansion of US tariffs under Section 232 presents challenges for India, affecting steel and aluminium exports and complicating ongoing trade negotiations. India is actively seeking resolution through the WTO and bilateral engagements.