India Proposes Tariff Cut to Under 4% Amid Trump's Tariff Hikes, Goyal's Visit Planned
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India has proposed to significantly reduce its average tariff differential with the United States from nearly 13% to under 4%, as part of ongoing trade negotiations, according to sources familiar with the matter. This move aims to secure an exemption from President Donald Trump's current and potential tariff hikes.
The proposal includes reducing duties to zero on 60% of tariff lines in the first phase of the deal, with exceptions for wheat, maize, rice, and dairy. India has also offered preferential access to nearly 90% of goods imported from the United States, which could enhance market access for U.S. products.
In exchange, India is seeking exemptions from all existing and future U.S. tariffs. The negotiations are progressing well, with an agreement reached on most areas, though differences remain on non-tariff barriers, with the U.S. sharing a list of 70 such barriers. India's trade minister, Piyush Goyal, is expected to visit the U.S. around May 19 to further these discussions.
The United States, India's largest trading partner with bilateral trade reaching $129 billion in 2024, has been pushing for a reduction in tariffs. President Trump recently announced a 90-day pause on new reciprocal tariffs, including a proposed 26% tariff on Indian imports, to facilitate these negotiations. India currently runs a $45.7 billion trade surplus with the U.S.
BREAKING: India proposing to drop tariffs from 14% to under 4% in new trade talks with U.S. That's good for $TSLA who is soon to be entering the market. https://t.co/gI15KuzVlQ
BREAKING: India proposing to drop tariffs from 14% to under 4% in new trade talks with U.S. That's good for $TSLA who is soon to be entering the market. https://t.co/gI15KuzVlQ
