India considers tariff cuts on $23B US imports, aiming to prevent reciprocal duties that could impact its exports.

India is considering slashing tariffs on over half of US imports worth $23 billion in a bid to ease trade tensions and counter impending US reciprocal duties. The move, still under negotiation, aims to prevent disruptions to Indian exports, which could face higher tariffs starting April 2.

The proposed cuts would affect products currently taxed between 5% and 30%, though essential goods like meat, maize, wheat, and dairy products remain excluded. India is also considering gradual reductions in tariffs on automobiles, which exceed 100%.

US reciprocal tariffs threaten to impact 87% of Indian exports to the US, valued at around $66 billion. If implemented, these duties could hit key industries like pharmaceuticals, electrical equipment, and machinery, pushing US importers toward suppliers from countries like Indonesia and Vietnam.

Talks are ongoing, with a US delegation set to visit India for further negotiations. India’s final decision hinges on securing eased US tariffs in return.

Source: India Today