India and US: The Tug-of-War Over Trade Tariffs

India is seeking preferential tariffs from the U.S. in ongoing trade deal negotiations. Talks slowed after the U.S. Supreme Court struck down tariff measures initiated by President Trump. New tariffs are being proposed over forced labor concerns and industry capacity. Both nations are working towards finalizing a trade agreement.

India is pushing the United States for preferential tariffs as part of ongoing discussions to finalize a trade deal, according to an Indian trade official.

Negotiations hit a roadblock after the U.S. Supreme Court overturned tariff measures initially instated by President Donald Trump. Since then, the U.S. has proposed a 12.5% tariff on imports from India, citing concerns over forced labor and India's excess industrial capacity hurting American industries.

The Indian official, who spoke anonymously, emphasized the need for competitive rates and future assurances against additional tariffs. Trade talks gained momentum last week with meetings between Assistant U.S. Trade Representative Brendan Lynch and Indian officials in New Delhi, with a goal to finalize the agreement by mid-July.