India and US near trade deal as 10% tariff expires
India and the US are almost ready to wrap up the first phase of their trade deal, but there's one big question left: what happens to tariffs on Indian exports after July?
The current 10% tariff is about to expire, and new rates under Section 301 of the US Trade Act are coming soon.
Both sides are trying to agree on numbers before sealing the deal.
US floats 12.5% tariff for imports
India is pushing for tariffs that stay competitive with what other countries get, plus a promise that there won't be surprise investigations in the future.
The US has floated a 12.5% tariff for imports from India and over 50 other economies, saying it's needed because of concerns around forced-labor enforcement.
This proposal is still under review and could shape how much Indian goods cost in America.
New Delhi talks on market access
Talks started focusing on market access and customs rules. The latest meeting in New Delhi was part of ongoing efforts to sort out these issues.
Whatever gets decided will have a big impact on how Indian products fare in US markets, and could change how both countries do business together going forward.