India is weighing a significant reduction in tariffs on US imports in an effort to protect its exports from potential upcoming American trade measures.
The move, which could impact $23 billion worth of US goods subject to Indian tariffs, is part of ongoing negotiations between the two nations, government sources told Reuters.
The decision comes as India looks to counter US President Donald Trump’s plan for reciprocal tariffs, which are set to take effect on April 2. Officials in New Delhi fear that these measures could affect 87 percent of India’s $66 billion in exports to the US.
"India is open to reducing tariffs on 55% of U.S. goods it imports that are now subject to tariffs ranging from 5% to 30%," said one of the sources, who spoke anonymously. Another official added that in some cases, tariffs could be "substantially lowered or even scrapped entirely" on imports worth over $23 billion.
During Prime Minister Narendra Modi’s visit to the US in February, both sides agreed to negotiate an early trade deal to resolve tariff disputes. Assistant US Trade Representative for South and Central Asia Brendan Lynch is leading a delegation for talks.
Officials emphasized that India’s willingness to cut tariffs depends on securing relief from the impending reciprocal tariff. While broad tariff reductions are on the table, other strategies, such as sector-specific adjustments and product-based negotiations, are also being considered.
Even though India has been discussing tariff reforms, officials caution that such measures are still in the early stages and may not be included in the immediate trade discussions with the US.
Despite Modi’s efforts to maintain strong ties with Trump, he has repeatedly labeled India a "tariff abuser" and the "tariff king." New Delhi estimates that tariffs on key export items—including pearls, mineral fuels, and machinery—could rise by 6 to 10 percent under the new policy, potentially disrupting $11 billion worth of pharmaceutical and automotive exports to the US.
Alternative suppliers such as Indonesia, Israel, and Vietnam could benefit from the shift in trade flows if US tariffs make Indian goods less competitive, an official noted.
India is setting clear boundaries for negotiations to secure domestic political support. Tariffs on meat, corn, wheat, and dairy products—currently ranging from 30 to 60 percent—are non-negotiable. However, India is open to easing tariffs on almonds, pistachios, oatmeal, and quinoa. Phased reductions in automobile tariffs, which currently exceed 100 percent, are also being considered.
The move, which could impact $23 billion worth of US goods subject to Indian tariffs, is part of ongoing negotiations between the two nations, government sources told Reuters.
The decision comes as India looks to counter US President Donald Trump’s plan for reciprocal tariffs, which are set to take effect on April 2. Officials in New Delhi fear that these measures could affect 87 percent of India’s $66 billion in exports to the US.
"India is open to reducing tariffs on 55% of U.S. goods it imports that are now subject to tariffs ranging from 5% to 30%," said one of the sources, who spoke anonymously. Another official added that in some cases, tariffs could be "substantially lowered or even scrapped entirely" on imports worth over $23 billion.
During Prime Minister Narendra Modi’s visit to the US in February, both sides agreed to negotiate an early trade deal to resolve tariff disputes. Assistant US Trade Representative for South and Central Asia Brendan Lynch is leading a delegation for talks.
Officials emphasized that India’s willingness to cut tariffs depends on securing relief from the impending reciprocal tariff. While broad tariff reductions are on the table, other strategies, such as sector-specific adjustments and product-based negotiations, are also being considered.
Even though India has been discussing tariff reforms, officials caution that such measures are still in the early stages and may not be included in the immediate trade discussions with the US.
Despite Modi’s efforts to maintain strong ties with Trump, he has repeatedly labeled India a "tariff abuser" and the "tariff king." New Delhi estimates that tariffs on key export items—including pearls, mineral fuels, and machinery—could rise by 6 to 10 percent under the new policy, potentially disrupting $11 billion worth of pharmaceutical and automotive exports to the US.
Alternative suppliers such as Indonesia, Israel, and Vietnam could benefit from the shift in trade flows if US tariffs make Indian goods less competitive, an official noted.
India is setting clear boundaries for negotiations to secure domestic political support. Tariffs on meat, corn, wheat, and dairy products—currently ranging from 30 to 60 percent—are non-negotiable. However, India is open to easing tariffs on almonds, pistachios, oatmeal, and quinoa. Phased reductions in automobile tariffs, which currently exceed 100 percent, are also being considered.
