India presses U.S. on Section 301 and tariffs in New Delhi

Indian officials pressed U.S. negotiators on Section 301 and tariff treatment as a U.S. delegation led by chief negotiator Brendan Lynch began three days of talks in New Delhi to try to finalize a bilateral trade agreement.

New Delhi raised the impact of the U.S. Section 301 investigation and the blanket 10% tariff. Indian officials say they will seek tariff rates they contend would improve India’s competitiveness against other Asian manufacturing destinations.

The talks build on an initial understanding reached in February. Negotiations slowed after the U.S. Supreme Court struck down earlier broad tariff measures. After that ruling, the U.S. opened Section 301 investigations into practices it described as unfair by several partners and imposed a 10% tariff.

Indian negotiators plan to press for preferential treatment compared with other developing economies in South and Southeast Asia, naming Bangladesh, Pakistan and Sri Lanka. New Delhi argues lower U.S. tariffs would make India a more attractive site for manufacturing and exports.

Officials described tariff preferences as a way to encourage companies to move production to India rather than to competing Asian hubs. New Delhi links its requests to plans to boost industrial output and export competitiveness. Any U.S. tariff concessions are likely to be weighed against U.S. concerns on market access and regulatory issues.

U.S. Trade Representative Jamieson Greer could visit India after negotiators agree on the broad framework of the pact, a step officials say would indicate talks have advanced to a new phase. The three-day session will be watched for technical fixes, compromises on tariff schedules and provisional measures related to the Section 301 review.

Both governments continue to negotiate specific tariff lines, timelines for implementation and mechanisms to resolve future disputes as they work toward a balanced agreement.