The Indian government is considering a significant reduction in tariffs on more than half of its imports from the United States, amounting to approximately $23 billion.
This plan is part of a trade deal currently being negotiated between the two countries, as reported by news agency Reuters, citing two government sources.
This potential tariff cut would be one of the largest in recent years, aimed at mitigating the impact of reciprocal tariffs set to be imposed by US President Donald Trump, which are scheduled to take effect on April 2.
These new tariffs have disrupted markets and raised concerns among various countries, including some US Western allies.
An internal analysis by India reveals that the new US tariffs could affect 87% of Indian exports to the US, valued at around $66 billion.
To counter this impact, India is open to lowering tariffs on 55% of US imports currently taxed between 5% and 30%. Some tariffs might be significantly reduced, while others could be eliminated entirely.
The proposal is still under discussion, and Indian government officials have yet to make a final decision.
Other alternatives being considered include adjusting tariffs for specific sectors instead of implementing a broad tariff cut and negotiating reductions for selected products rather than across multiple industries.
A US delegation, led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, is scheduled to visit India for trade talks starting Tuesday.
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