NEW DELHI: THE US has promised to give India a comparative tariff advantage over its competitors under the proposed trade deal, a senior official said on Friday. The legal text of the agreement will include safeguards to ensure that the US cannot impose additional tariffs beyond its commitments once the deal is concluded, the official added.
The US team visited India in the first week of November for discussions. India’s major competitors include Vietnam, Bangladesh and Brazil, with which the US is actively engaged in tariff discussions and trade negotiations.
Vietnam currently faces 12.5% general duties on its exports to the US under Section 301, while Bangladesh faces a 10% duty. Section 301 of the US Trade Act of 1974 grants the Office of the United States Trade Representative the authority to take retaliatory action against foreign government policies or practices that violate US trade agreements.
India and the US have been negotiating the trade deal since it was announced in February 2026. During the negotiations, the US imposed an additional 10% ad valorem import duty on Indian goods under Section 301, effective July 24, 2026. The final tariff framework will depend on the outcome of the ongoing Section 301 investigation.