India offers zero-for-zero tariffs on steel, auto, and pharma imports from US

New Delhi (India) May 6: According to reports, India has proposed reciprocity-based zero-for-zero tariff arrangements on a number of goods, such as steel, auto parts, and pharmaceuticals, that are limited to certain import levels during trade talks with the US.

The talks take place as US President Donald Trump has put the proposed reciprocal tariffs on hold for 90 days. India, Japan, and South Korea are among the many Asian nations leading the matter to reach temporary plans with the Trump administration.

A Bloomberg article claims that Indian trade negotiators made this idea during their trip to Washington last month in order to speed up talks for a bilateral trade agreement that is expected to be finalised by the autumn of this year.

According to the sources, once imports above a specific threshold, the usual duty rates would be imposed.

According to reliable sources mentioned in the Bloomberg section, the US raised concerns to India about Quality Control Orders, seeing them as trade barriers that harm US shipments.

These mandatory quality standards, which set criteria for both foreign and domestic producers selling goods in India, have come under fire for being vague and unfair.

Indian authorities have showed openness to evaluate present QCOs, particularly in the medical devices and chemical sectors. In order for both nations to recognise and accept one another's regulatory systems and procedures, they have suggested signing a mutual recognition agreement with the US.

It is unclear if these recommendations will be used in the final agreement.

Vice President JD Vance said last week after Donald Trump's announcement of tariffs, India might be among the first nations to negotiate a trade agreement with the US.

Vance stated that "good negotiations" on tariffs were currently underway with India in an appearance with Fox News on Thursday.

“I don't know if it'll (India) be your first deal, I think it would be among the first deals for sure. Pretty soon the President look, we've got negotiations with Japan, with Korea, we've got negotiations going on with some folks in Europe, and obviously we've got a good negotiation going on in India,” Vance said.

Trump most recently suggested on Sunday that his administration would reach trade agreements with some nations as early as this week.

When asked if there would be any trade agreements this week, Trump responded to reporters on Sunday, "It could very well be.”

“We’re negotiating with many countries, but at the end of this, I’ll set my own deals — because I set the deal, they don’t set the deal,” Trump said aboard Air Force One. “You keep asking the same question: ‘When will you agree?’ It’s up to me, it’s not up to them.”

Aadrika Tayal