New Delhi: As the United States readies to impose reciprocal tariffs on April 2, India is navigating a delicate path in bilateral trade negotiations. In New Delhi, government officials are aggressively advocating for a “national interest first” approach, while remaining open to reducing tariffs on select U.S. imports. These talks are crucial as India seeks to protect its $66 billion worth of exports to the U.S., which could face significant challenges if the new tariffs are implemented.
Sources indicate that India is willing to consider tariff cuts on agricultural items like walnuts, apples, and almonds. However, it remains firm on sensitive sectors such as wheat and maize, emphasizing the need to safeguard its agricultural industry. A government source emphasized, “We are ready to cut on some items, but keeping in mind the sensitivity of the agricultural sector, on many items, no concessions are likely to be given.”
India’s automobile sector is also at the forefront of these discussions. With the U.S. planning to impose a 25% tariff on passenger vehicles, India is exploring ways to mitigate the impact. Measures such as slashing tariffs on bikes and smaller passenger cars are being considered. Additionally, recent benefits and incentives for the electric vehicle sector aim to cushion the potential blow.
Another area of cooperation is the reduction of tariffs on iconic U.S. products like Bourbon whiskey. This move reflects India’s willingness to engage positively while ensuring its national interests remain paramount.
