India Urges US to Withdraw Proposed 12.5% Tariff, Pushes for Bilateral Trade Talks

India has asked the United States to withdraw its proposed 12.5% tariff on select imports, emphasizing that the issue should be resolved through dialogue rather than unilateral trade measures.

The request comes as both countries continue discussions aimed at deepening economic cooperation and expanding bilateral trade, even as differences persist over tariffs, market access and regulatory policies.

India Calls for Negotiated Solution

Government officials said New Delhi has conveyed its concerns to Washington, arguing that the proposed tariff could adversely affect businesses and disrupt the momentum of India-US trade relations.

India has maintained that trade disputes are best addressed through constructive bilateral negotiations instead of imposing additional duties.

Officials also reiterated India's commitment to achieving a balanced and mutually beneficial trade framework.

Focus on Strengthening Trade Ties

India and the United States have significantly expanded their economic partnership over the past decade.

The US remains one of India's largest trading partners, with bilateral trade covering goods, services, technology, defence, pharmaceuticals and energy.

Both governments have repeatedly expressed their intention to increase trade volumes while resolving longstanding commercial disputes.

Concerns Over Proposed Tariff

The proposed 12.5% tariff has raised concerns among exporters and industry groups, who fear higher duties could reduce competitiveness and increase costs for businesses.

Trade experts believe additional tariffs may impact supply chains and complicate efforts to expand commercial cooperation between the two economies.

India has therefore urged the US administration to reconsider the proposal before it is implemented.

Bilateral Negotiations Continue

Officials from both countries are expected to continue discussions through existing trade mechanisms.

The negotiations are likely to focus on reducing trade barriers, improving market access and addressing concerns raised by businesses on both sides.

New Delhi has indicated that sustained dialogue remains the most effective path toward resolving outstanding issues.

Strategic Partnership Beyond Trade

Trade remains one pillar of the broader India-US strategic partnership, which also includes cooperation in defence, technology, clean energy and the Indo-Pacific region.

Both countries have strengthened ties in recent years through multiple high-level meetings and agreements aimed at boosting economic and geopolitical collaboration.

Analysts believe preserving stable trade relations will be essential for maintaining the momentum of the wider partnership.

Industry Awaits Outcome

Businesses in both countries are closely watching the ongoing discussions.

Exporters hope negotiations will prevent additional tariffs and provide greater certainty for companies engaged in cross-border trade.

Industry bodies have also called for policies that encourage investment and facilitate smoother market access.

Looking Ahead

India's appeal to the United States underscores its preference for dialogue over tariff-based trade measures.

As negotiations continue, both sides will seek to strike a balance between protecting domestic industries and preserving one of the world's fastest-growing bilateral economic relationships.

The outcome of the talks could shape the future direction of India-US trade cooperation in the months ahead.