India to Seek Clarity on Competitor Tariff Treatment in June US Trade Talks

India Reassesses Tariff Rate Ahead of US Trade Talks

India is likely to reassess the treatment being offered to competing exporting nations before finalising a new tariff rate as part of the proposed trade pact with the US. This comes ahead of a planned visit by a US delegation to India in June for the next round of trade discussions, with both sides working toward an interim arrangement covering tariff reductions and market access across sectors.

The Indian government's decision follows a series of court rulings against the US tariff regime. In May, the US Court of International Trade struck down the US reciprocal tariffs of up to 50 percent, imposed earlier this year under emergency powers. The court ruling has left the eventual rate applicable to Indian exports uncertain, officials said.

The proposed trade pact between India and the US had agreed on a framework for an interim bilateral trade agreement (BTA) in February. Under this arrangement, tariffs on Indian-origin goods would be reduced to 18 percent from an effective 50 percent level. However, subsequent court rulings and the introduction of a temporary 10 percent tariff under Section 122 of the Trade Act of 1974 have created uncertainty over what tariff framework will ultimately apply to Indian exports.

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Comparison of Tariff Rates

The Indian government is also tracking a parallel Section 301 investigation initiated by the Office of the US Trade Representative (USTR), which examines foreign trade practices that Washington considers unfair or restrictive to US commerce. The probe covers issues such as manufacturing overcapacity, labour standards, and market access barriers. Officials say any duties arising from that process would carry greater legal resilience than reciprocal tariffs struck down by US courts.

Against this backdrop, Indian negotiators are evaluating what final tariff structure may emerge and whether competing export economies could secure more favourable terms. The discussions are also taking place against the backdrop of a Section 301 investigation initiated by the USTR, which examines foreign government policies and practices that Washington believes may be unfair, discriminatory, or restrictive to US commerce.

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India has already submitted its response and representations to the USTR as part of the consultation process and continues to engage with the US side on the issues raised under the investigation, while broader trade negotiations remain underway.