New Delhi is hoping such efforts will help India close a trade deal with the US by the fall, a goal set by both countries at the Modi-Trump summit earlier this month in Washington.
Indian officials are exploring ways to lower tariffs on a wide range of imports, including cars and chemicals, in a bid to evade US President Donald Trump’s threatened reciprocal levies, according to people familiar with the matter.
Officials in New Delhi are discussing reducing duties for automobiles, some agricultural products, chemicals, critical pharmaceuticals, as well as certain medical devices and electronics, the people said, asking not to be identified as the plans aren’t finalized.
The proposals would go much further than previous tariff reductions already unveiled by Prime Minister Narendra Modi’s administration in recent weeks, like on high-end motorcycles and bourbon whiskey — goods exported by the US to India, but while politically important for Trump, aren’t sold in large volumes in the South Asian nation.
India’s Ministry of Commerce and Industry didn’t immediately respond to a request for further information.
New Delhi is hoping such efforts will help India close a trade deal with the US by the fall, a goal set by both countries at the Modi-Trump summit earlier this month in Washington. While officials don’t expect that deal to be finalized by April — when Trump’s planned reciprocal levies may begin — they’re hopeful progress toward an agreement may shield India from those duties.
Indian officials are examining the country’s existing tariff regime from multiple angles. Among the options under consideration is whether to reduce overall average tariffs or take a more sector-by-sector approach, the people said. Separately, India’s Ministry of Commerce and Industry set up a team that’s taking feedback from other ministries and stakeholders on the potential impact any reciprocal tariffs might have, some of the people said. Some sectors aren’t expected to see any tariff reductions, including dairy products, they said.