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Talks continue on India-US trade agreement

India on Friday said it has taken note of the latest announcement made by US President Donald Trump regarding new global tariffs and talks on a bilateral trade agreement (BTA) with the US are ongoing with a view to concluding it at the earliest. Responding to a question during the weekly media briefing, External Affairs Ministry spokesperson Randhir Jaiswal said the US announcement on tariffs is a 301 enforcement action and it was initiated after the US Supreme Court's decision on the tariff issue. He said, "We have taken note of the announcement. This is a 301 enforcement action and was initiated following the US Supreme Court's decision on the tariff issue... We have made our position clear on this subject. Our discussions with the US are ongoing with a view to concluding the BTA as soon as possible."

America imposed new tariffs

The Office of the US Trade Representative (USTR) on Thursday announced new tariff slabs ranging from 10 to 12.5 percent across 60 economies under Section 301 of the Trade Act of 1974. The tariffs, which took effect Friday, follow actions taken at the direction of President Trump on major global trading partners. Washington has described these as inadequate measures to ban imports of goods produced with "forced labour".

India got place in 10% tariff slab

Under the new structure, India has been placed in the bottom 10 per cent tariff category along with 16 other economies including the United Kingdom, Canada, Indonesia, Mexico and Bangladesh. Official sources told ANI that although New Delhi was initially set for the higher 12.5 per cent bracket, it secured the lower rate after constructive and meaningful talks with the US on labor practices. According to USTR, the 10 percent rate applies to economies that either maintain a ban on forced labor imports, have committed to it through a reciprocal trade agreement, or have partial arrangements in place to prevent such imports.

Impact on other countries too

Meanwhile, a differential framework of 10 to 12.5 percent applies to some products from the EU, Taiwan, Japan, Korea and Switzerland, while all other countries under investigation face the full 12.5 percent duty. The decision follows a comprehensive Section 301(b) investigation launched by USTR in March in 60 economies, which included consultations with more than 45 governments, multiple public hearings and analysis of more than 1,600 written comments. The move marks the latest increase in global trade measures following an earlier ruling by the US Supreme Court that outlawed several tariffs imposed under emergency powers, prompting the administration to use Section 301 statutory authority to advance its trade agenda. (ANI)