'US May Demand Not Just Tariff Cuts But...'

'...additional concessions, such as opening government procurement, reducing agricultural subsidies, weakening patent protections, and allowing unrestricted data flows -- demands India has resisted for decades.'

IMAGE: US President Donald Trump makes a point during his address to the joint session of the United States Congress, March 4, 2025. Photograph: Brian Snyder/Reuters

As Commerce Minister Piyush Goyal and his US counterpart Howard Lutnick began talks to strike an early bilateral trade deal, the US-India Business Council (USIBC) of the US Chamber of Commerce on Tuesday said that non-tariff barriers and red tape should be 'dismantled with haste' as they slow market access.

USIBC President Atul Keshap said that meaningful trade facilitation through a bilateral trade deal is long overdue, and would be instrumental in boosting the GDP of both countries.

The pact could also provide full and open market access.

Goyal and Lutnick held their first meeting in Washington on Tuesday.

Goyal will also meet the newly appointed United States Trade Representative (USTR) Jamieson Greer, ahead of the implementation of reciprocal tariffs on countries, including India, a month later.

Last month, Prime Minister Narendra Modi and US President Donald Trump agreed to begin negotiations and finalise a mutually beneficial bilateral trade agreement (BTA) within the next seven to eight months.

The trade deal is being negotiated at a time when the Trump-led government is set to impose reciprocal tariffs in early April to match other countries' tariffs, taxes and non-tariff barriers.

"For years, US and Indian businesses have invested in each other's countries without a formal investment or trade framework," Keshap said.

"India represents only 2.5 per cent of America's trade volumes, and that number can and should increase substantially," Keshap added.

"Now, both sides should work with focus to formalise a level playing field, full and open market access, swift dispute arbitration, and predictable tax and regulatory policies to boost investment, growth, and job creation in both countries," Keshap explained.

Even as businesses remain optimistic about the trade deal between India and the US, a Delhi-based think-tank said that India should be cautious about negotiating a comprehensive FTA with the US as it disregards negotiated trade agreements.

'NAFTA, the free trade agreement between the US, Canada, and Mexico, had been in place since January 1994. However, Trump was dissatisfied with its terms and, during his first term, replaced it with USMCA (US-Mexico-Canada FTA) in 2018-2019, claiming NAFTA was outdated and hurt American workers,' GTRI said.

'Now, he is unhappy with his own deal and has imposed 25 per cent tariffs on Canada and Mexico starting today, violating USMCA's terms,' GTRI pointed out.

The US on Tuesday imposed 25 per cent tariffs on imports from Canada and Mexico. China now faces a combined 20 per cent tariff on its exports to the US, up from 10 per cent.

'Worse, at the negotiating table, the US may demand India not just tariff cuts but also additional concessions, such as opening government procurement, reducing agricultural subsidies, weakening patent protections, and allowing unrestricted data flows -- demands India has resisted for decades,' GTRI said.

Govt awaits clarity on tariffs before steel trade strategy

Puja Das

Union Steel and Heavy Industries Minister H D Kumaraswamy on Tuesday said the government will devise a trade strategy for the steel industry after getting clarity on the nature of tariffs imposed by the United States.

The minister's comments come after Donald Trump imposed a 25 per cent tariff on imports from Canada and Mexico and an additional 10 per cent levy on imports
from China.

The measures came into effect on Tuesday. Even though Trump has repeatedly labelled India a high-tariff nation, he has yet to take action against New Delhi.

"India will wait and watch on the levy of any tariffs by the developed world on steel and steel products," Kumaraswamy said on the sidelines of an event organised by the Automotive Component Manufacturers Association of India.

"There is no clarity on what is going to be the quantum and extent of tariffs imposed by the US. We will devise a trade strategy and ways to protect businesses after knowing what the levy would be", he said.

"US tariffs on Chinese goods would increase the cost of products. This may give Indian products a competitive edge over Chinese goods due to lower tariffs", Ajay Sahai, director-general and chief executive officer of the Federation of Indian Export Organisations, had told Business Standard earlier.

For over a month, the commerce department officials studied the opportunities and challenges -- how it would impact specific sectors and the mitigation efforts.

India has identified electronics, pharmaceuticals, textiles, auto components, and chemicals to boost US exports amid the possibility of a trade war between Washington and Beijing.

The steel demand is rising due to fast-paced urbanisation, infrastructure, and industrial growth, and the government anticipates steel production to touch nearly 300 million tonnes (mt) from 120 mt over the next five years.

At present, up to 12 per cent of India's greenhouse gas emissions come from steelmaking, according to the Global Energy Monitor, an organisation that tracks energy projects around the globe.

Feature Presentation: Aslam Hunani/Rediff.com