India-US Trade Talks: FICCI Opposes US Proposed 12.5% Tariff

India's leading industry bodies, FICCI and CII, have formally opposed the US proposal to impose a 12.5% tariff on Indian imports during ongoing India-US trade talks. The organizations urged the US Trade Representative (USTR) to withdraw the proposed tariff, arguing it would harm bilateral trade relations and Indian exporters. The talks, held in New Delhi, involve key sectors such as textiles, pharmaceuticals, and IT services. FICCI and CII emphasized that such a tariff would undermine the spirit of the trade partnership and could lead to retaliatory measures. The US has not yet responded to the opposition. The proposed tariff is part of broader US efforts to address trade imbalances.

Global Impact

Economically, the tariff could disrupt $50 billion in bilateral trade, hitting Indian SMEs hardest and raising costs for US consumers. Politically, it strains India-US strategic ties, potentially pushing India closer to other trade blocs like RCEP.