US Trade Officials Likely to Visit India by Month's End Amid Near Completion of Trade Negotiations

US Trade Delegation to Visit India as Interim Agreement Near Completion

A US trade delegation is expected to visit India later this month as the interim agreement between the two countries is "almost concluded", a government official revealed. The talks between the US and India have been ongoing, with the official stating that the date of the visit has not yet been finalized.

The US trade delegation's visit comes as a result of the ongoing Section 301 probe, conducted by the Office of the United States Trade Representative under the Trade Act of 1974. This probe allows Washington to investigate and respond to what it considers unfair trade practices, potentially resulting in the imposition of tariffs or other trade restrictions.

The investigation, launched on March 12, covers 16 economies, including India, China, Japan, South Korea, and the European Union, spanning sectors such as steel, aluminium, automobiles, batteries, electronics, chemicals, machinery, semiconductors, and solar modules.

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India is seeking a reduction of the earlier-discussed tariff level of around 18 percent, arguing that the effective rate has since dropped to 10 percent following a US court ruling. However, US officials have signaled that the current tariff level may not hold, with the ongoing Section 301 probe seen as a basis for potentially revising duties once its findings are finalized.

In February, the Supreme Court of the United States struck down President Donald Trump's administration's reciprocal tariff regime. As a result, Washington turned to Section 122 as an interim measure to maintain trade pressure.

The shift toward Section 301 reflects the limitations of Section 122, under which tariffs are applied at a uniform 10 percent but remain temporary and legally constrained. Section 122 allows the president to impose ad hoc tariffs for a limited period with defined ceilings, but any increase, such as proposals to raise the rate to around 15 percent for certain trading partners, could require congressional approval or face legal challenges.

A joint statement issued by India and the US on February 7 outlined plans to reduce tariffs on Indian goods from 50 percent to 18 percent under an interim trade deal framework. On the same day, the 25 percent additional ad valorem tariffs previously imposed by the US on certain Indian exports, citing India's imports of Russian oil, were removed, leaving the duty at 25 percent pending an order to bring it down to the agreed rate.

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Following the US Supreme Court's February 20 ruling that invalidated reciprocal tariffs, these duties are no longer in effect.

Note: The table above highlights the planned reduction in tariffs on Indian goods and the current status of US tariffs on Indian exports.