India is open to slashing its tariffs on $23 billion worth of US imports as it rushes to shield itself President Trump’s reciprocal taxes, according to a report.
The South Asian nation is feeling the heat as the White House gears up to launch stiff reciprocal tariffs on April 2, what Trump has called “Liberation Day.”
New Delhi estimated such tariffs would hit 87% of its total exports to the US worth a whopping $66 billion, two government sources familiar with the matter told Reuters.
India’s proposal to cut tariffs on more than half of US imports is contingent on securing relief from the reciprocal taxes, according to the report.
The White House and a representative for India’s government did not immediately respond to The Post’s requests for comment.
Trump has warned there will be no relief for any so-called “trade abuser” nations, specifically naming India, from the reciprocal tariffs.
The US trade-weighted average tariff was about 2.2% in 2023 – far below India’s 12%, according to data from the World Trade Organization. The US has a $45.6 billion trade deficit with India.
China’s average tariff stands at 3%, while Japan’s is 1.7%.
But New Delhi has been eager to clinch a deal ahead of the April deadline.
Brendan Lynch, assistant US trade representative for South and Central Asia, is set to lead a delegation of officials from the US for trade talks starting Tuesday, according to the report.
The two nations first agreed to start working toward an early trade deal during Prime Minister Narendra Modi’s visit to the US in February.
As part of the proposed deal, India signaled that it’s open to lowering tariffs on 55% of US imports, which are currently subject to 5% to 30% taxes, the government sources told Reuters.
The decision to cut tariffs is still in flux, with other options on the negotiating table, including changes to product-by-product or sectoral taxes, according to the report.
India is also weighing more widespread reforms to its tariffs, but these discussions are in the early stages and might not figure into the US talks, a source told Reuters.
New Delhi estimated Trump’s reciprocal tariffs would raise taxes 6% to 10% on items like pearls, mineral fuels, machinery, boilers and electrical equipment, which make up half of its exports to the US, sources told Reuters.
Trump’s tariffs on pharmaceutical drugs and the auto industry could also hit India hard, since it is dependent on the US market, one of the sources said.
Alternative suppliers – like Indonesia, Israel and Vietnam – could 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 lower tariffs on certain goods – like meat, maize, wheat and dairy products – are out of the question.
The South Asian nation is also planning to push for phased cuts to its automobile tariffs – which reach as high as 110%, which Trump ally Elon Musk has criticized as one of the steepest in the world.
Sunil Barthwal, India’s trade secretary, told a parliamentary committee earlier this month that India did not want to lose the US as a trading partner – but that it remained unwilling to “compromise on our national interest,” according to sources who attended the closed-door meeting.
Commerce Secretary Howard Lutnick, however, urged India to “think big” after it cut tariffs on motorcycles and bourbon whiskey this year.
With Post wires
