The Indian government has announced that it has successfully negotiated an exemption for 45% of its exports to the US from new tariffs imposed by the Biden administration. The move comes after intense trade talks between the two nations, which had been ongoing for several weeks. According to reports, the US had threatened to impose tariffs on Indian goods worth $6.7 billion, but India has managed to negotiate a deal that spares 45% of its exports.
The tariffs were imposed in response to India's failure to comply with US trade norms, including the use of unfair trade practices and failure to provide adequate market access to US companies. However, India has maintained that it has taken steps to address these concerns and has secured the exemption as a result.
The development is seen as a major relief for India's export-driven economy, which has been struggling to cope with the impact of the pandemic and other global economic challenges. The country's exporters are expected to benefit significantly from the exemption, which will enable them to continue exporting goods to the US without incurring additional costs.
However, not all Indian exports to the US have been spared the tariffs. The Biden administration has imposed tariffs on several Indian goods, including textiles, leather products, and handbags. These tariffs are expected to remain in place, at least for now, as the two nations continue to negotiate a long-term trade agreement.
The UK Government has welcomed the development, saying that it is a positive step for bilateral trade between India and the US. The Foreign Office has also issued an update to its travel advice for India, cautioning British nationals to be aware of the ongoing trade tensions and potential disruptions to supply chains.