India Proposes Tariff Cuts to the U.S.

India has proposed to eliminate tariffs on limited imports of steel, auto parts, and pharmaceutical products from the United States in exchange for similar actions from Washington. Bloomberg reports this development.

According to the publication, the proposal was made during a visit by Indian officials to Washington at the end of April. Both parties are attempting to expedite the signing of a bilateral trade agreement this autumn.

Sources from Bloomberg indicate that the tariff-free imports would only apply to certain volumes of goods. Once these limits are exceeded, standard tariff rates would be implemented.

Among the U.S. conditions is the resolution of issues related to so-called Quality Control Orders (QCOs), which Washington considers a non-tariff barrier. These refer to mandatory quality standards that all manufacturers, including foreign ones, must adhere to. The American side describes these measures as opaque and discriminatory.

In response, India is willing to reconsider these requirements in specific sectors, particularly in medical devices and chemicals, and suggests signing an agreement on mutual recognition of standards.

As noted by the publication, discussions are still ongoing, and it remains unclear whether these points will be included in the final text of the agreement.