India-US Trade Talks: Legal Uncertainties & Trump Tariffs

New Delhi, Jun 4 (PTI) India is weighing legal uncertainties surrounding Trump tariffs as it prepares for the next round of trade talks this week, an official said.

The official said these developments could influence India's approach to the proposed bilateral trade pact with the US.

A team of US officials is visiting here from June 5 to hold talks with their Indian counterparts on the proposed pact.

Though India is looking for a balanced and a mutually beneficial trade agreement with the US, "what we get as compared to other countries, will determine what we ultimately finalise in the deal", the official said.

The US is negotiating trade pacts with over 75 countries, including China. It has already finalised a pact with the UK.

Asked if some kind of interim trade deal can be agreed upon before July 9, the official said a lot of uncertainties are there at present because of developments like the Trump administration's plan to further increase tariffs on steel and a stay on a court order against the US authorities' decisions on tariffs.


But within the constraints of uncertainties, India has to find pathways which are good for the country, the official added.

A US court of international trade on May 28 had ruled that present Trump tariffs were illegal under the international emergency economic powers act. The administration later filed an appeal and got a stay on this order.

On April 2, US President Donald Trump announced reciprocal tariffs against several countries, including India. It imposed an additional duty of 26 per cent on India, but later suspended it till July 9. However, the 10 per cent baseline duty on all the countries remains.

India has already reserved its right to impose retaliatory tariffs against US duties on steel and aluminium. It has also sought consultations under the WTO norms on US tariffs on auto components.

If India is considering taking similar measures in more products, the official said India will protect its interests.

"We will see what is good for India... accordingly we will take decisions," the official said, adding, "Today a lot of uncertainties are there... because of that court order... we will discuss how to address these issues... lot of uncertainties are there".