India, US near trade pact as tariff terms hinge on Section 301 relief, source says
India to raise US Section 301 probe, tariffs in talks
US team led by Brendan Lynch in Delhi for three-day negotiations
India seeks tariff relief and better Asian peer access in deal push
India is likely to discuss Washington’s Section 301 investigation and potential tariff measures with US trade officials, as the two nations seek to finalise a deal, an Indian government source said on Monday.
A US delegation led by Assistant US Trade Representative for South and Central Asia Brendan Lynch will hold three days of talks with Indian trade officials in New Delhi from Tuesday.
The US and India reached an initial understanding for a trade deal in February, but negotiations slowed after President Donald Trump’s sweeping tariff measures were struck down by the US Supreme Court.
After the court order, the Trump administration launched investigations under Section 301 of the Trade Act of 1974, into unfair trade practices against several trading partners including India, while imposing a blanket 10 per cent tariff.
In talks with Lynch and his team, New Delhi will seek relief from tariffs emerging from the probe, an Indian trade source told reporters, speaking on condition of anonymity as details of the planned talks are confidential.
“India has to discuss the tariff rate, 301 probe impact, and aim for a competitive tariff rate versus direct competition,” said the source, adding that the deal could be agreed if “we get the terms fair, equitable, and balanced.”
India’s trade ministry and the Office of the US Trade Representative did not immediately respond to requests for comment.
New Delhi will seek tariff treatment that would give it an advantage over competing manufacturing hubs in Asia as it aims to strengthen its position in global supply chains, the source said.
The official said India expected preferential tariff rates compared with developing countries in South Asia and Southeast Asia, including Bangladesh, Pakistan and Sri Lanka.
US Trade Representative Jamieson Greer could visit India once the broad contours of the agreement are finalised, the source added, signalling progress in the negotiations.
The talks come as India seeks greater access to the US market while navigating trade frictions over tariffs and other regulatory measures.
Last week, Sergio Gor, the US ambassador to India, said a deal with New Delhi would likely be finalised “over the next few weeks and months.”