According to a CNBC report citing data from Reuters, India is prepared to reduce tariffs on more than half of U.S. imports, valued at $23 billion, as part of the initial phase of a trade agreement under negotiation with the United States. This move would mark the largest tariff reduction in recent years for the country, designed to counteract forthcoming reciprocal tariffs from the U.S.
The impending tariffs from the U.S., set to commence on April 2 as announced by President Donald Trump, have caused disruptions in global markets and forced policymakers to take action. New Delhi’s internal assessments indicate these tariffs could affect 87% of India’s $66 billion exports to the U.S., affecting various sectors.
India is willing to lower tariffs on 55% of the American goods it imports, which currently face duties between 5% and 30%. In some cases, the nation is considering significant reductions or complete eliminations of tariffs on imports from the U.S., as per one source indicated in the report.
Negotiations for an early trade deal were initiated during Prime Minister Narendra Modi’s visit to the U.S. in February. India aims to reach an agreement before the advent of these reciprocal tariffs, while the talks are set to continue in New Delhi, led by Brendan Lynch, the Assistant U.S. Trade Representative for South and Central Asia.
Indian officials emphasized that the decision to cut tariffs significantly depends on securing a favorable outcome regarding the reciprocal tariffs. The decision to cut tariffs is still pending, with alternative strategies like sector-specific tariff adjustments and negotiations on individual products being considered instead of a broad reduction.
Broader tariff reforms are also under contemplation by New Delhi, aimed at a more uniform reduction in trade barriers, but these are in preliminary stages and might not be featured immediately in discussions with the U.S.
