India-US Interim Trade Deal Awaits New US Tariff Structure

The interim trade agreement between India and the US is on hold, pending the establishment of the US's new global tariff architecture. Both countries have finalized the framework, but signing awaits clarity on tariff structures influenced by recent US legal and policy changes.

The anticipated interim trade agreement between India and the US is in a holding pattern, according to a senior official. The pact awaits the implementation of a new global tariff architecture by the US government, which has been under review after a Supreme Court ruling affected existing tariffs.

India and the US had settled on a framework for the initial phase of the bilateral trade agreement, which included reducing tariffs on Indian imports by the US to 18 percent. However, recent changes in the US trade policy have delayed the finalization of the legal text and the official signing of the agreement.

The US is working to redefine its tariff system. The official expressed optimism that once the new structure is in place, both countries will finalize the agreement, ensuring competitive and preferential market access. Meanwhile, the US is also conducting further investigations under Section 301, affecting international trade negotiations.

(With inputs from agencies.)