NEW DELHI (Diya TV) — India is contemplating reducing tariffs on important U.S. imports, such as farm products and medicines, as part of wider trade talks with the two countries, two sources in the Indian government informed Reuters.
The proposed reductions, which would target over half of the $23 billion in U.S. products India buys every year, seek to protect Indian exports from fresh retaliatory tariffs that are scheduled to be implemented on April 2 as part of former President Donald Trump’s trade policy. The tariffs would affect 87% of India’s $66 billion in exports to the U.S., according to internal analysis seen by Reuters.
India is willing to lower duties on 55% of the U.S. commodities it now charges between 5% and 30%. These commodities include almonds, pistachios, oatmeal and quinoa, as well as pharmaceuticals, a significant part of India’s export economy. Tariffs on meat, maize, wheat and dairy products—now between 30% and 60%—will not be lowered because of domestic political considerations, the sources indicated.
The trade officials of both nations are likely to sit together in New Delhi between March 25 and 29, with Assistant U.S. Trade Representative Brendan Lynch heading the U.S. delegation. The high auto tariffs of India, which are over 100%, will also be discussed, with possible phased cuts.
India’s government parliamentary committee recently advised reducing tariffs on raw materials imported into the country to encourage domestic production. Yet, certain industry associations fear cutting tariffs on manufactured goods will deluge the country with cheap imports, which would harm local producers.
