India-US trade deal will be effective from next week
What's the story
Union Commerce and Industry Minister Piyush Goyal has said that the recently announced 18% tariffs by the US are likely to come into effect next week. Speaking to CNBC-TV18, Goyal said the new tariff regime will start after an executive order is signed by the White House. He also revealed that United States Trade Representative (USTR) Jamieson Greer is expected to visit India in March for signing a document formalizing this trade deal.
Deal
Interim trade deal announced last week
The India-US trade deal was announced last week, with an aim to reduce trade barriers, lower tariffs, and enhance market access for both countries. The interim agreement focuses on offering immediate relief to exporters through tariff cuts. Goyal emphasized that the tariff reset would significantly boost US market access for Indian goods, with nearly half of India's exports to Washington attracting zero duty under this new deal.
Tariff specifics
Some products will continue to attract duties
While the new deal offers major tariff cuts, some products will continue to attract duties. Goyal said around 10-15% of India's exports to the US, including steel and aluminum, will continue to be subject to US Section 232 sectoral tariffs and shall face duties of up to 50%. Around 35% of other exports will be subject to 18% tariffs under this new agreement.
Exclusions
E-commerce inventory issues not part of negotiations
Goyal clarified that inventory-related issues for e-commerce firms were not part of the trade negotiations between India and US. This means India's existing framework for this sector will remain unchanged despite these new tariffs and market access rules.
Oil imports
Russian crude oil imports not part of trade deal
On the issue of importing Russian crude oil, Goyal said it was not part of the trade deal. He clarified that while Washington had earlier said that it would monitor India's future oil imports from Russia, this matter is being handled by the Ministry of External Affairs under S Jaishankar.