India may land sub-20% US tariff

Blitz Bureau

NEW DELHI: The US is working toward an interim trade deal with India that may reduce its proposed tariffs to below 20%, as per a Bloomberg report. People familiar with the matter said, putting India in a favorable position against its peers in the region.

India doesn’t expect to receive a tariff demand letter — unlike many other nations this week — and anticipates the trade arrangement will be announced through a statement, the people said, asking not to be identified because the discussions are private. The interim deal would allow for continued talks, giving New Delhi space to resolve outstanding issues ahead of a broader agreement expected this fall, they said.

The statement would likely set a baseline tariff below 20% — compared with 26% initially proposed — with language that would allow the two sides to continue negotiating the rate as part of the final pact, the people said. The timing of an interim agreement is unclear.

If finalized, India would be on a short list of trading partners that have secured deals with the Trump administration. US President Donald Trump has otherwise shocked dozens of trading partners this week by announcing tariff rates of as high as 50 pc in some cases ahead of an Aug. 1 deadline.

India’s Ministry of Commerce and Industry didn’t respond to an email seeking further information. The White House and Commerce Department also did not immediately respond to requests for comment.

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