On implementation of the India-UK free trade agreement, the official said discussions were progressing well to resolve certain outstanding issues, including Britain’s steel safeguard measure. A high-level US team, likely to be led by US trade representative (USTR) Jamieson Greer, is expected to visit India towards the end of this month. The USTR in March initiated two probes under Section 301 against a number of countries, including India, over excess capacity and failures to eradicate forced labour in global supply chains. It has now proposed a 12.5% tariff on India and 53 other countries citing forced labour. Report on the excess capacity probe is awaited.
Conclusion of the probe is important as the temporary 10% tariffs imposed in February by the US will end on July 24. After that, only the MFN (most favoured nation) tariffs will apply on US’s trading partners. “So, if the US wants us to pay any additional tax…they have to finish the Section 301 process before that,” the official said. India is seeking lower tariffs than its competitors like members of the Asean bloc, Sri Lanka and Bangladesh.
Last week, commerce and industry minister Piyush Goyal said India and the US are moving towards closing all the open ends of an interim trade agreement, and both sides are likely to execute the “very, very vibrant” first phase of the pact by the middle of July.
India-UK Talks
UK’s steel safeguard measure and Carbon Border Adjustment Mechanism have become sticking points in the implementation of the Comprehensive Economic and Trade Agreement, which was signed on July 24, 2025.
“Talks are going on, and the progress is good. We have ironed out one of the three issues. On the second and third issue, they have given us some proposals, we have given some counter questions. Both teams are working on that,” the official said without disclosing details of the issues. When asked if minister Goyal would travel to London, the official said: “If things get ironed out, then maybe.” The India-UK joint economic and trade committee meeting is expected to be held later this month in Britain.
On June 2, Goyal held talks with UK secretary of state for business and trade Peter Kyle on these issues. From July 1, 2026, the UK will limit tariff-free steel imports, reducing overall quota volumes by 60% compared with the earlier steel safeguard measure. Any imports above these levels will then face a 50% tariff. India’s exports of iron and steel and their products to the UK totalled $893.4 million in 2025-26. Total merchandise experts to the UK were $13.4 billion.