New Delhi: The US Chamber of Commerce (USCC), Coalition of Services Industries (CSI) and the iconic motorbike company Harley Davidson are among some leading industry associations and companies in the United States that have asked the Donald Trump-led administration to push India to reduce tariffs, non-tariffs and other regulatory barriers for American goods, Business Standard reported.
The appeal comes on the heels of the reciprocal tariffs set to be implemented from April 2. It is part of the review of ‘unfair trade practices’ by partner countries, launched by the US Trade Representative (USTR).
The USCC is the most influential business lobbying group in the States. The group has asked for “Make in India” regulations to be amended “to include U.S. suppliers in the government procurement process”.
Since the beginning of trade negotiations between the US and India, the USCC has been urging both sides to leverage the trade relationship for a successful deal.
It has particularly asked for reduced import duties by India on pharmaceuticals to “enhance access to affordable medicines for Indian consumers but also promote greater trade and investment in the healthcare sector”, while also raising concerns over price controls on patented medicines and medical devices, as well as the issue of counterfeit drugs. It has also recommended India to allow the import of refurbished medical equipment.
On the other hand, noting the 28% GST (goods and services tax) on non-alcoholic aerated beverages, the USCC has appealed to reduce it as it hurts US companies.
“A review of tax classifications for non-alcoholic beverages could encourage investment, innovation, and revenue generation while maintaining public health objectives,” it said.
Similarly, CSI, a union that represents leading firms like Google and Amazon, has backed Trump’s call against unfair trade practices and criticised India’s digital policies including data localisation requirements and preferential treatment to domestic payment systems like UPI and RuPay cards, Business Standard reported.
According to a report by Moneycontrol, the American Apparel and Footwear Association (AAFA) also flagged Indian regulations saying it was forcing US companies out of the market, while US agricultural lobbying groups called for lower tariffs on dairy, wheat, soybeans, and almonds.
Harley-Davidson has also supported the Trump administration’s demand for reduced tariffs, highlighting India’s 100% import duty on American motorcycles, compared to lower tariffs in the US, Europe, Brazil and Thailand, the report stated.
Notably, the Union government has recently slashed import duty on imported motorcycles with completely built-up (CBU) units after Trump said that it was “getting nothing” with the earlier reductions on customs duty.
The duty on bikes with engine capacities up to 1,600 cc has been reduced from 50% to 40% and for bikes with engine capacities exceeding 1,600 cc, it had been dropped from 50% to 30%.
