India’s exports worth about $44 billion to the US will enter the American market at zero reciprocal tariffs under the first phase of the bilateral trade agreement, which is expected to be signed by mid-March, said Commerce and Industry Minister Mr Piyush Goyal. While Indian goods worth about $30 billion will continue to attract an 18% tariff (which includes goods from the labour-intensive sectors), there will be no change in duties on goods worth $12 billion (including steel, copper and certain auto parts). These tariffs on steel, aluminium, copper and auto parts apply to all countries equally, so they do not impact only India’s competitiveness. These products face a 50% tariff in the US. The reduction in tariffs will immediately boost exports of labour-intensive sectors such as textiles, apparel, leather and footwear, as per a report.
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