India has offered to eliminate tariffs on select imports from the United States—specifically steel, auto parts, and pharmaceuticals—up to a defined quota, in an effort to accelerate a long-anticipated bilateral trade agreement. The proposal, tabled by Indian trade officials during recent talks in Washington, is seen as a strategic move to conclude a deal before the 90-day pause on US retaliatory tariffs expires.
Sources familiar with the negotiations indicated that the tariff waiver would apply only up to a certain import volume, beyond which standard duties would resume. The limited-duty offer is part of a targeted approach by both nations to secure early consensus on high-priority sectors.
The talks come amid heightened urgency, with the US economy showing signs of strain and President Donald Trump suggesting that several trade agreements could be finalized within days. This presents a critical window for India to secure more favorable access to the US market and potentially avoid further tariff escalations.
In parallel, discussions have also focused on non-tariff barriers, particularly India’s Quality Control Orders (QCOs), which the US views as restrictive for foreign exporters. These mandatory standards have seen a sharp rise since 2017, increasing from 14 to over 140. Critics in the US argue the QCOs lack transparency and disproportionately impact international suppliers.
India has expressed openness to addressing these concerns and is considering mutual recognition agreements in sectors like medical devices and chemicals, which would allow each country to recognize the other’s regulatory standards.
While progress on QCOs is ongoing, it remains unclear whether these issues will be resolved in time to be included in the final agreement. However, the current pace of negotiations and willingness on both sides suggest that a framework deal could be within reach by this autumn.
