India has proposed tariff reductions on U.S. agricultural imports to prevent reciprocal tariffs from President Trump, setting it apart from other countries. Agreements include cuts on bourbon whiskey and various crops, with ongoing negotiations expected to lead to a trade deal by 2025. India’s alignment with U.S. priorities aims to secure favorable trade outcomes.

India has proposed tariffs cuts on importation of American agricultural products including almonds and cranberries as part of its efforts to prevent reciprocal tariffs from President Donald Trump, according to two government officials. Unlike other countries such as China and the European Union, India continues to pursue negotiations with the Trump administration, offering to reduce tariffs on over $23 billion worth of U.S. imports.

During discussions in New Delhi with Brendan Lynch, the Assistant U.S. Trade Representative for South and Central Asia, India agreed to lower tariffs on bourbon whiskey and specific agricultural items including almonds, walnuts, cranberries, and lentils. The meetings aim to streamline negotiations, with conclusions expected by late Friday.

Indian Trade Minister Piyush Goyal indicated that the trade talks are “progressing well” and that the ongoing bilateral trade pact will be beneficial for both countries. One source from the government noted, “Securing a favorable deal is a priority for Indian negotiators,” highlighting India’s alignment with U.S. agricultural priorities.

While India has reduced tariffs on bourbon whiskey from 150% to 100% in the previous month, agricultural imports still face duties of 30% to 100%. Notably, there is hesitance within the Indian government to lower tariffs on dairy products, rice, wheat, and maize. Additionally, India seeks enhanced market access for certain fruits like pomegranates and grapes in the U.S.

Negotiators are anticipated to outline the framework for the initial phase of the bilateral trade agreement, which is projected to be finalized by fall 2025. In 2024, U.S. agricultural and related product exports to India reached nearly $2 billion, while India’s exports to the U.S. amounted to approximately $5.5 billion.

In conclusion, India is proactively negotiating tariff reductions on certain U.S. agricultural imports to foster favorable trade relations and avert potential reciprocal tariffs from the Trump administration. These discussions encompass both bourbon whiskey and a variety of agricultural products, with India prioritizing concessions in alignment with U.S. interests. The ongoing negotiations are poised to yield a bilateral trade agreement by 2025, reflecting mutual economic benefits.

Original Source: www.business-standard.com

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