India Open To $23 Billion Tariff Cut, Including Agri, Pharma,To Avert Trade Dispute

India-West News Desk

NEW DELHI – India is considering lowering tariffs on agricultural products, pharmaceuticals, and other key imports from the United States as part of a broader trade negotiation between the two countries, two government sources told Reuters. The proposed reductions, which would apply to over half of U.S. imports worth $23 billion, mark one of the most significant tariff cuts in years, aimed at mitigating the impact of President Donald Trump’s planned reciprocal tariffs.

India is deeply concerned about the effects of Trump’s global tariff strategy, set to take effect on April 2, which could severely disrupt its exports to the U.S. According to an internal analysis reviewed by Reuters, the proposed tariffs would impact 87% of India’s $66 billion in exports to the United States.

Under the trade deal being discussed, India is open to cutting tariffs on 55% of the U.S. goods it currently taxes at rates ranging from 5% to 30%, Reuters reported. This includes agricultural commodities such as almonds, pistachios, oatmeal, and quinoa, along with pharmaceuticals, which make up a significant portion of India’s exports to the U.S. Additionally, New Delhi may push for phased reductions in automobile tariffs, which currently exceed 100%.

While India is open to these tariff reductions, it has set firm limits on certain sectors, Reuters said. Tariffs on meat, maize, wheat, and dairy products—currently between 30% and 60%—will not be part of the negotiations. That will have political ramifications for Prime Minister Narendra Modi government.

Despite Modi being among the first to congratulate him on returning to power and trying to placate him, Trump has long criticized India’s tariff policies, and branding the country a “tariff abuser” and the “tariff king.”

Milan Vaishnav, an expert on South Asian politics and economy at the Carnegie Endowment for International Peace, told Reuters, “To date, the Modi government has shown little appetite for sweeping tariff cuts of the kind Trump is seeking. It is possible the Modi government could use external pressure from the Trump administration to enact politically costly, across-the-board cuts, but I am not holding my breath.”