India Proposes Zero Tariffs on Steel, Auto Parts, Pharma in US Trade Talks

India has proposed a reciprocal zero-tariff arrangement with the US on select items including steel, auto components, and pharmaceuticals, up to a specified import volume, as part of ongoing efforts to secure a bilateral trade deal expected by fall. If imports exceed this threshold, standard tariffs would apply. These proposals were discussed during Indian trade officials' recent visit to Washington, with both countries aiming to finalize an agreement before the expiration of a 90-day pause on US reciprocal tariffs. The US has raised concerns about India's mandatory Quality Control Orders, which it views as non-tariff barriers to trade. In response, India has indicated willingness to reconsider these standards in certain sectors and proposed a mutual recognition agreement to accept each other's regulatory practices. It is still uncertain whether these proposals will be incorporated into the final trade agreement.