India considers cutting tariffs on $23 billion worth of US imports

India is considering cutting tariffs on imports from the US to avoid President Donald Trump's global retaliatory tariffs. Photo: Business Today

The South Asian nation wants to minimize the impact of US President Donald Trump's global retaliatory tariffs that take effect on April 2, a threat that has disrupted markets and worried policymakers, including Western allies.

In an internal analysis, New Delhi estimated that the reciprocal tariffs would affect 87% of its total exports to the US, worth $66 billion. Under the deal, India will reduce tariffs on 55% of US imports currently subject to tariffs ranging from 5% to 30%.

In this category of goods, India is willing to “significantly” reduce tariffs or even completely eliminate some duties on imports worth more than $23 billion from Washington.

The Indian Ministry of Commerce and the Prime Minister's Office have not commented on the issue.

During Indian Prime Minister Narendra Modi's visit to the US in February, the two countries agreed to start talks towards signing a trade deal soon and resolving the tariff impasse.

New Delhi wants to reach an agreement before the reciprocal tariffs are announced, and Assistant US Trade Representative for South and Central Asia Brendan Lynch will lead the US delegation in trade talks with India this week. Indian government officials have cautioned that tariff cuts on more than half of US imports are contingent on securing reciprocal tariff reductions.

One of the Indian officials said the decision to cut tariffs was not final, with other options being discussed such as sector-specific tariff adjustments and product-by-product negotiations instead of broad cuts.

India is also considering broader tariff reforms to reduce barriers equally, but those discussions are at an early stage and may not be included immediately in talks with the US.

According to Economic Times

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