High Tariffs and New Digital Barriers Strain US-India Trade Relations

The US Trade Representative's latest report highlights ongoing concerns over India's high tariffs on a range of products, from automobiles to agricultural goods. This year, the list of grievances expands to include internet shutdowns and data localization requirements, signaling a broader dispute over digital trade barriers.

Internet Shutdowns: A New Frontier in Trade Disputes

India's localized internet shutdowns have drawn criticism for disrupting commercial operations and undermining the principles of a free and open internet. The US is closely monitoring the impact of these shutdowns on trade and investment in the digital economy.

Data Localization and eSIM Regulations Under Scrutiny

The report also raises concerns over India's data localization requirements and new roaming rules for eSIMs, which could impose additional costs on manufacturers and users of machine-to-machine devices, diverging from global practices.

Tariff Concerns Remain Unresolved

Despite the addition of digital issues, the bulk of the report reiterates longstanding US complaints about high tariffs on American exports, ranging from agricultural products to alcoholic beverages, with some levies reaching as high as 150%.

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