Will India’s biggest tariff cut in years shield its exports from Trump’s trade war?
India is ready to make a historic move—cutting tariffs on more than half of all US imports, worth $23 billion. Why? To protect its own exports from punishing new US tariffs set to kick in on April 2.
The decision comes after President Donald Trump threatened reciprocal tariffs worldwide, a move that could hammer 87% of India’s $66 billion exports to the US, from machinery to pharmaceuticals.
What’s on the Table?
- Biggest Cut in Years: India may slash or even eliminate tariffs on 55% of US goods, currently taxed at 5-30%.
- Red Lines: No cuts on meat, wheat, or dairy (currently taxed at 30-60%), but almonds, quinoa, and high-end motorcycles could get cheaper.
- Auto Sector: India may push for phased cuts on car tariffs, which currently exceed 100%.
Also Read: U.S. Threatens India With Tariffs Over Venezuelan Oil—Will Modi Back Down?
Why Now?
The clock is ticking. Prime Minister Narendra Modi and Trump agreed in February to fast-track trade talks. With a US trade deficit of $45.6 billion with India, Trump has called India a “tariff king”, refusing to back down.
India’s goal? Strike a deal before April 2—or risk losing ground to competitors like Vietnam and Israel.
The Tightrope Walk
India’s trade secretary, Sunil Barthwal, told lawmakers: “We won’t compromise national interest.” Yet, experts doubt Modi will agree to sweeping cuts unless forced.
Meanwhile, US officials urge India to “think big”, but with political opposition at home, Modi faces a tough balancing act.
India’s offer isn’t final—sector-by-sector talks or smaller adjustments are still possible. But one thing’s clear: the stakes have never been higher.
Also Read: U.S. Tariffs Spark Fifth-Day Oil Rally—Will OPEC+ Intervene?
