India Presses for US Tariff Rollback to Boost Trade Competitiveness

India aims to negotiate the withdrawal of a 25% 'Russian oil' tariff by the U.S. to enhance trade competitiveness, per the Global Trade Research Initiative. Following cessation of Russian oil imports, India seeks to reduce tariff burdens before reengaging in balanced trade discussions with the U.S.

India is pushing for the United States to retract a 25% tariff on 'Russian oil' as a prerequisite for any forthcoming trade agreements, according to a report by the Global Trade Research Initiative (GTRI). The report suggests that India, having ceased imports of sanctioned Russian oil, is now positioned to advocate for tariff reductions to regain competitiveness in critical sectors.

The GTRI report emphasized the need for India to solidify the withdrawal of the tariff before moving forward with fair trade talks. With the elimination of Russian oil imports from the equation, India must urge Washington to lessen the U.S. duty load from 50% to 25% on Indian goods, enhancing competitiveness in industries including textiles, gems, and pharmaceuticals.

Further, the report advises that India await the U.S. Supreme Court's decision on the legality of the Trump-era tariffs. As President Donald Trump indicated optimism for reducing these tariffs and entering a trade deal, India is poised to negotiate a balanced accord that aligns with EU standards while targeting average industrial tariffs of around 15%.

(With inputs from agencies.)