According to Bloomberg, India has proposed zero tariffs on steel, automotive parts and pharmaceuticals up to certain import thresholds in its trade negotiations with the US. The proposal was presented by Indian trade officials who visited Washington last month. The trade deal is expected to be finalized by the fall of this year.
According to sources, normal tariffs will be imposed on these products if import limits are exceeded. India's proposal is reportedly an effort to reach an agreement on specific sectors before the 90-day pause on US President Donald Trump's retaliatory tariffs expires.
Against the backdrop of a downturn in the US economy and the need to accelerate trade deals, Trump's announcement that some trade agreements may be terminated later this week opens up the opportunity for trading partners like India to strike deals with potentially lower import tariffs.
On the other hand, Washington remains concerned about India's Quality Control Orders (QCOs). The US reportedly stated that these mandatory quality standards create a barrier that prevents the export of US products to India. India has offered to reconsider these standards and to enter into a mutual recognition agreement with the US on certain products such as medical devices.
While talks are still ongoing, India's position on QCOs is uncertain whether it will be included in the final trade agreement.
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