India May See 20-25% Tariff Amid Extended US Trade Talks, Says Report
India is likely to finalise the broader trade deal with the US by September-October, the report said, citing sources.
India could face higher US tariffs between 20-25% on some of its exports as a temporary measure, news agency Reuters reported, citing sources. This comes amid the extended trade deal negotiations between New Delhi and Washington.
According to the report, India and the US are likely to finalise a comprehensive bilateral agreement by September or October.
Sources told the news agency that in the "worst-case scenario" US President Donald Trump could issue a tariff letter imposing levies of 20-25%. However, this would be a temporary measure considering the trade talks between both the countries. The report also added that a deal will soon be worked out.
Trump on Monday had announced that the trading partners with no trade deals by Aug. 1 would face tariffs of 15% to 20% on their exports to US.
India, however, is likely to continue the broader trade negotiations, as a delegation from the US will visit the country for the next round of talks on Aug. 25.
The visit would come weeks after the fifth round concluded in Washington on July 19. With just days to go before the Aug. 1 deadline for possible US tariff action, discussions remain active behind the scenes, the persons privy to the development told NDTV Profit.
The upcoming round of talks is expected to cover unresolved issues related to market access, tariffs, and digital trade. While both sides have signaled intent to deepen economic ties, negotiations have faced hurdles over regulatory standards and duties on key goods.
