India open to tariff cuts on $23B of US imports to – Business News
India is open to slashing its tariffs on $23 billion value of US imports because it rushes to protect itself President Trump’s reciprocal taxes, in accordance to a report.
The South Asian nation is feeling the heat because the White House gears up to launch stiff reciprocal tariffs on April 2, what Trump has known as “Liberation Day.”
New Delhi estimated such tariffs would hit 87% of its complete exports to the US value a whopping $66 billion, two authorities sources aware of the matter instructed Reuters.
President Donald Trump welcomes Indian Prime Minister Narendra Modi to the White House final month. EyePress News/Shutterstock
India’s proposal to cut tariffs on more than half of US imports is contingent on securing aid from the reciprocal taxes, in accordance to the report.
The White House and a consultant for India’s authorities didn’t instantly reply to The Post’s requests for remark.
Trump has warned there will likely be no aid for any so-called “trade abuser” nations, particularly naming India, from the reciprocal tariffs.
The US trade-weighted average tariff was about 2.2% in 2023 – far under India’s 12%, in accordance to knowledge from the World Trade Organization. The US has a $45.6 billion commerce deficit with India.
China’s average tariff stands at 3%, whereas Japan’s is 1.7%.
But New Delhi has been keen to clinch a deal forward of the April deadline.
Brendan Lynch, assistant US commerce consultant for South and Central Asia, is set to lead a delegation of officers from the US for commerce talks beginning Tuesday, in accordance to the report.
India estimated the reciprocal tariffs would hit 87% of it complete exports to the US value $66 billion, in accordance to the report. AFP through Getty Images
The two nations first agreed to begin working towards an early commerce deal during Prime Minister Narendra Modi’s go to to the US in February.
As half of the proposed deal, India signaled that it’s open to decreasing tariffs on 55% of US imports, that are at the moment subject to 5% to 30% taxes, the federal government sources instructed Reuters.
The determination to cut tariffs continues to be in flux, with different choices on the negotiating desk, together with modifications to product-by-product or sectoral taxes, in accordance to the report.
India can be weighing more widespread reforms to its tariffs, however these discussions are within the early phases and won’t determine into the US talks, a source instructed Reuters.
India signaled it’s open to decreasing tariffs on 55% of US imports, authorities sources instructed Reuters. AP
New Delhi estimated Trump’s reciprocal tariffs would raise taxes 6% to 10% on gadgets like pearls, mineral fuels, machinery, boilers and electrical gear, which make up half of its exports to the US, sources instructed Reuters.
Trump’s tariffs on pharmaceutical medicine and the auto industry may additionally hit India onerous, since it’s dependent on the US market, one of the sources mentioned.
Alternative suppliers – like Indonesia, Israel and Vietnam – may stand to benefit from the hefty reciprocal taxes on India, they added.
While India is intent on reaching a deal with the US, it has clarified that decrease tariffs on sure items – like meat, maize, wheat and dairy merchandise – are out of the query.
President Donald Trump has warned there will likely be no aid for any so-called “trade abuser” nations, particularly naming India. AP
The South Asian nation can be planning to push for phased cuts to its car tariffs – which attain as high as 110%, which Trump ally Elon Musk has criticized as one of the steepest on the earth.
Sunil Barthwal, India’s commerce secretary, instructed a parliamentary committee earlier this month that India didn’t need to lose the US as a trading associate – however that it remained unwilling to “compromise on our national interest,” in accordance to sources who attended the closed-door assembly.
Commerce Secretary Howard Lutnick, nevertheless, urged India to “think big” after it cut tariffs on bikes and bourbon whiskey this yr.
With Post wires
