Archive · 24 Sep 2025
India Seeks Tariff Advantage in US Trade Talks
India and the US are talking about a trade deal.
India wants to pay lower taxes (tariffs) on goods it sells to the US, so it can compete with other countries like Vietnam and Indonesia.
The US has put extra taxes on Indian goods.
India wants the US to remove these extra taxes, and lower the regular taxes so that Indian products are cheaper.
They are hoping to reach an agreement by the end of the year.
If successful, it may boost Indian trade to the US.
India is negotiating a trade agreement with the United States.
India aims to gain a tariff advantage over competitors such as Vietnam, Bangladesh, and Indonesia.
The US imposed 25% tariffs on Indian goods, with an additional 25% penal tariff.
India is requesting the rollback of penal tariffs and a reduction in reciprocal tariffs.
Negotiations aim to finalize the first part of the BTA by October-November.
- Who
- India, United States
- What
- Negotiating a trade agreement
- When
- Ongoing negotiations, with a potential October-November deadline
- Where
- Bilateral trade agreement negotiations
- Why
- To establish preferential trade terms
India's Perspective
US Perspective
Tariff Imposition
India's Perspective
India wants the US to rollback penal and reduce reciprocal tariffs to gain an advantage.
US Perspective
The US has not indicated a willingness to lower tariffs below the MFN for any country.
Market Access
India's Perspective
India seeks to protect its agricultural and dairy sectors.
US Perspective
The US is likely pushing for market access in items like agricultural and manufactured goods.
- Focus
- India-US Bilateral Trade Agreement (BTA)
- Objective
- Gain tariff advantage over competitors
- Key Competitors
- Vietnam, Bangladesh, Indonesia
- Current Tariffs
- 25% on most Indian goods
- Penal Tariffs
- 25% additional on Indian goods
- Negotiation Goal
- Rollback penal tariffs, reduce reciprocal tariffs
- Deadline
- October-November for first tranche of BTA
Sources
Trump’s ‘plan B’ for possible US Supreme Court setback on tariff powers, and what it could mean for India
Amid Trump turmoil, India and EU aim for trade deal by year-end, next round of talks from Oct 6
India US bilateral talks underway amid expectations of making headway on the deal
India wants trade pact with US to give it tariff advantage over competing nations
