Whereas aid on US reciprocal tariffs is among the many key calls for from Indian negotiators in trade for opening up the Indian market to American items, wider US tariffs—comparable to these on metals, a possible responsibility on BRICS international locations, and on consumers of Russian oil—aren’t a part of the continuing commerce negotiations with the US but, a authorities official mentioned on Tuesday.
“As of now, India and the US are negotiating on the idea of the phrases of reference (ToR) that have been finalised [in April],” the official mentioned in response to a query on whether or not wider US tariffs are a part of the continuing negotiations. The official added that the negotiations will proceed with the US and the aim stays a bilateral commerce settlement (BTA) by the top of the 12 months.
The official mentioned that, at the moment, solely US baseline tariffs of 10 per cent and sectoral tariffs on metal and aluminium—together with fentanyl-related tariffs on China—have come into impact. “These have resulted in greater responsibility collections for the US, and their imports from China and particular sectors have gone down,” the official mentioned.
This assumes significance as US President Donald Trump has continued to announce recent tariffs on international locations regardless of the US having commerce offers with a few of them, comparable to Canada and Mexico.
Whereas sectoral tariffs—comparable to 50 per cent on metal, aluminium and copper—are already disrupting India’s exports to the US, Trump has additionally threatened steep tariffs on BRICS international locations over their problem to the US greenback and has warned of duties on consumers of Russian oil. Notably, India is a high importer of Russian oil.
Commerce knowledge present that the US is India’s third-largest copper export market, after Saudi Arabia (26 per cent) and China (18 per cent). Nevertheless, given copper’s standing as a essential mineral and its intensive use throughout infrastructure, power and manufacturing, India’s home trade is more likely to soak up any decline in US demand ensuing from the proposed tariffs.
Exporters have mentioned that US tariffs on metal have already impacted India’s metal exports.
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Earlier this month, Trump mentioned that tariffs on prescribed drugs might rise to 200 per cent after a 12 months. That is vital, because the US is India’s largest abroad marketplace for prescribed drugs. Drug exports to the US rose to $9.8 billion in FY25, up 21 per cent from $8.1 billion the earlier 12 months, and now account for 40 per cent of India’s whole pharma exports.
Trump added that he’s additionally planning to impose tariffs on imported semiconductors and prescribed drugs, with medication tariffs doubtlessly reaching 200 per cent. Nevertheless, he mentioned drugmakers can be given a few 12 months “to get their act collectively”.
“We’re going to present individuals a few 12 months, a 12 months and a half to return in and, after that, they’re going to be tariffed,” Trump advised reporters throughout a Cupboard assembly on the White Home on July 8.
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