India suggests ‘deep cuts’ on tariffs as discussions with US continue
(MENAFN) India has proposed significant reductions in import tariffs on a range of products as it works to finalize a preliminary trade deal with the United States, the Financial Times reported on Wednesday. However, the country intends to keep high tariffs on key agricultural items such as grains and dairy.
The move comes as India aims to avoid a 26% reciprocal tariff the US plans to implement on Indian exports starting July 9. According to sources familiar with the discussions, India is open to lowering duties on less sensitive agricultural goods like almonds, which currently face tariffs as high as 120%. Tariff reductions on oil and gas imports—currently taxed at 2.5% to 3%—are also being considered.
While specifics on the range of US goods affected were not disclosed, insiders suggested that the tariff cuts could mirror those made in past deals, such as the one with the UK. That agreement included reductions on alcoholic beverages, electric and conventional vehicles, auto parts, and engineering products.
India's Finance Ministry stated in its Monthly Economic Review on Tuesday that a trade deal with Washington could shift current economic challenges into opportunities, boosting exports and expanding market access.
The US had imposed additional tariffs on Indian imports effective April 2, but these were paused for 90 days and are set to resume unless a deal is reached by July 9. A standard 10% tariff on Indian goods remains active.
US President Donald Trump has previously labeled India the “tariff king.” In February, New Delhi took steps to address US concerns by lowering duties on products like luxury vehicles and solar panels.
India’s proposed 2025 budget aims to reduce the highest import tariff rate from 150% to 70%, and lower the average tariff from 13% to below 11%. New Delhi has also expressed interest in purchasing US defense goods and liquefied natural gas. Despite these efforts, the US has reportedly urged companies like Apple to reconsider expanding manufacturing in India.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
