India considers major tariff cuts on US imports to avert trade disruptions
PTC Web Desk: The Indian government is considering a significant reduction in tariffs on over half of US imports, valued at approximately $23 billion, as part of an ongoing trade agreement between the two nations, as reported by Reuters.
This move, if finalised, would mark one of India's most substantial tariff reductions in recent years. The objective is to mitigate the impact of impending reciprocal tariffs imposed by the United States, which could negatively affect Indian exports.
The US government, under President Donald Trump, is set to implement global reciprocal tariffs from April 2, a decision that has already unsettled global markets and raised concerns among several nations, including key US allies.
An internal analysis by Indian trade officials suggests that nearly 87% of Indian exports to the US, worth around $66 billion, could be affected by these tariffs, according to government sources.
To counter this, India is exploring the possibility of lowering duties on 55% of US imports, which are currently taxed between 5% and 30%. Some levies may be substantially reduced or eliminated altogether, depending on the sector.
While discussions are underway, a final decision has yet to be reached. The Indian government is also evaluating alternative approaches, such as sector-specific tariff adjustments or targeted reductions for select products rather than a broad-based tariff cut.
A high-level US trade delegation, led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, is scheduled to arrive in India on Tuesday for further negotiations. The Indian administration is keen to finalise a resolution before the new US tariffs take effect.
- With inputs from agencies
