India’s trade minister has set a condition to finalize a trade deal agreed with the United States earlier this year.
After the US Supreme Court struck down President Donald Trump’s tariffs as illegal in February – soon after the two countries reached an agreement – the administration imposed a 10% global tariff under Section 122 of the Trade Act.
Trade Minister Piyush Goel said at the India Global Forum in London on Wednesday that New Delhi’s negotiated deal with Washington offered a then-competitive 18% tariff, which offered an edge over competing economies like ASEAN, other than Singapore, and neighboring countries.
“That is why the deal was attractive,” Goyal said.
“With the US Supreme Court striking down the tariffs, and now with the 10% expiring on July 24, we obviously need to have some reason to be able to enter into force that agreement,” he said.
Goyal said New Delhi needs to ensure a competitive advantage over what is being paid by countries in the same stage of development, naming some ASEAN nations and neighboring countries, including Bangladesh.
“Until the framework for getting a competitive advantage is finalized, we cannot enter into force a US deal,” Goyal said.
The remark came just a day after India held trade talks with US Trade Representative Jamieson Greer. The New Delhi talks were the third round on the issue since the trade deal was announced in February.
New Delhi and Washington failed to reach an agreement on trade after several rounds of talks last year. The US then slapped a 50% tariff on India, half of which was cited as a penalty for India’s purchases of Russian oil.
Also on Wednesday, US Treasury Secretary Scott Bessent said tariff rates could return to previous levels after Greer “concludes studies on Section 301 investigations.”
Section 301 allows the US to levy tariffs without additional congressional approval. The move shows the Trump administration’s resolve to circumvent the legal setbacks it suffered.
The investigations under Section 301 were launched in March against several countries including China and India, and the European Union.