Wider US tariffs off the table in trade talks for now: Official
A top Indian government official confirmed that the United States is not discussing broader tariffs in its current trade negotiations with India. This clarity offers relief to Indian exporters and policymakers, especially amid concerns over rising U.S. protectionism.
Talks Stay Within Pre-Set Boundaries
Current trade discussions between India and the U.S. stick to the Terms of Reference (ToR) finalized earlier this year. These talks focus on existing U.S. tariffs on steel, aluminum, and pharmaceuticals. They do not cover wider tariff policies aimed at countries like China or Russia.
The Indian official emphasized that Washington has not signaled any intent to expand tariffs on Indian goods. “We are only working on the issues listed in the April agreement,” the official said.
Why This Clarity Matters Now
The update comes as the U.S. recently imposed heavy tariffs on Chinese goods and hinted at sanctions for countries buying Russian oil. Many feared that India might face a similar fate.
India’s key exports to the U.S. include steel, aluminum, pharma products, textiles, and IT services. New tariffs would raise prices and hurt exporters. Knowing that broader duties are not on the table offers short-term stability.
“It gives us breathing room to plan our exports better,” said a senior executive from an Indian steel company. “But this doesn’t mean we’re safe forever.”
What the Talks Include
The current talks focus on three main areas:
- Steel and Aluminum Tariffs: India wants relief from U.S. tariffs of 25% on steel and 10% on aluminum. These duties were imposed under U.S. national security laws.
- Pharmaceuticals: India seeks faster U.S. approval for generic drugs and recognition of Indian certification standards. This will help drug makers export more efficiently.
- Digital Services: Both sides have started talks on digital trade rules. These discussions are still in the early stages.
Officials hope to finalize a mini trade deal by the end of 2025. This deal could serve as a stepping stone to a broader agreement in the future.
Political Timing Plays a Role
The narrow focus of the talks may reflect the political climate in both countries. U.S. elections are near, and Washington may avoid upsetting ties with India. At the same time, India is adjusting its economic policies after national elections.
Experts believe that avoiding difficult topics, like oil imports from Russia or alignment with China, helps both governments. “They’re keeping it simple to get some wins,” said a trade analyst in Washington.
The Risk Isn’t Gone Yet
Even though the U.S. has not proposed new tariffs on Indian goods, the risk is still there. Future decisions could change quickly if political or strategic priorities shift.
For example, India’s oil trade with Russia may come under pressure. The U.S. has warned that it might penalize countries that continue to buy Russian energy.
Also, if India takes a neutral stance on key global issues, the U.S. might reconsider its trade position. Tariffs could return as a tool to shape policy.
What Indian Industries Are Saying
Exporters welcome the current pause in tariff talks. However, they urge the government to secure long-term protection.
The Engineering Export Promotion Council (EEPC) said the news brings some certainty. “We hope India will use this window to build permanent tariff security,” it said in a statement.
The Pharmaceutical Export Promotion Council (Pharmexcil) echoed this view. They believe streamlined U.S. regulations will help Indian drug firms stay competitive in global markets.
What Lies Ahead
The next round of trade talks is expected in September 2025. Both sides want to wrap up a limited trade agreement this year. They plan to focus on steel, pharma, and digital trade.
By leaving broader U.S. tariffs off the table, negotiators can concentrate on practical, less controversial goals. But the political landscape can change fast.
For now, Indian exporters have a chance to regroup and push for stronger terms. The outcome of these talks could shape the future of U.S.–India trade ties.
