India Considers Reducing Tariffs on $23 Billion US Imports
India is exploring a proposal to reduce import tariffs on over $23 billion worth of goods from the United States as part of efforts to shield approximately $66 billion in Indian exports from looming retaliatory tariffs. The potential reduction in duties comes amid increasing trade tensions and is part of a strategic move to safeguard India’s export-driven sectors ahead of the April 2 deadline when the US is expected to impose reciprocal tariffs.
Key Products Likely to Benefit
More than half of US-origin goods currently facing Indian import tariffs between 5% and 30% may be included in the proposed cuts. Products likely to benefit from the relaxation include almonds, pistachios, quinoa, and oatmeal—items where the US holds a strong export position. However, India plans to retain high tariffs on sensitive agricultural commodities such as wheat, maize, meat, and dairy, which are seen as crucial to protecting domestic farmers and food security.
The consideration for selective reduction underscores India’s attempt to strike a balance between maintaining domestic interests and easing trade tensions with a major global partner.
High-Level Trade Talks Underway
This development follows ongoing discussions between Indian and American trade officials, who are negotiating a broader bilateral trade agreement. A key objective for India is to finalize a framework before US retaliatory measures come into effect. The negotiations reflect mutual interest in enhancing market access, reducing tariff barriers, and fostering long-term economic cooperation.
India is also reportedly weighing product-specific strategies and phased reductions instead of sweeping cuts, signaling a cautious yet responsive approach. While no final decision has been taken, officials are expected to make determinations based on sectoral needs and trade balance considerations.
If implemented, the tariff cuts would mark a significant step in improving trade relations and potentially pave the way for a comprehensive trade pact. It could also send a strong signal to global markets that India is open to recalibrating its trade policies in response to evolving geopolitical and economic dynamics.
