The tariff game started by the incumbent US president, Donald Trump, has put a lot of nations and the US's trading partners and allies alike in a tight spot. One such nation to be affected is India. As per various media reports, there have been many back and forths on the matter in the recent past.
India To May Cut Duty
The biggest Achilles' heel for the two nations is the reciprocal tariff that the Trump administration announced for all its trading partners last month.
These are expected to kick in on April 2.
Following this, India said that it is still negotiating with the US on the terms of the tariff regime. In addition, India also said that it has asked the US for time until September.
However, this diplomatic discourse was thrown out of the window when Trump, while speaking in an interview, said that he expects India to slash tariff, while keeping the April 2 deadline open.
According to Business Today, India may be considering reducing the import duty burden on marquee products like Bourbon whiskey, Californian wines, and even Harley-Davidson motorcycles. | Unsplash
Now, it is being reported that India may be considering slashing tariff on certain products.
According to Business Today, India may be considering reducing the import duty burden on marquee products like Bourbon whiskey, Californian wines, and even Harley-Davidson motorcycles.
Interestingly, these are some relatively niche products, which a small group of patrons, and these products have received similar reduction in import duties previously as well.
What Is the India-US Trade Relationship?
One of the biggest talking points in the India-US trading relationship in the trade deficit that the US shares with India. One of Trump's key policy avenues has been bringing America's trade deficit with its trading partners, who, according to Trump, are exploiting the US and its vast and consumption-driven market.
This is where India ends up in a tight spot, as the United States has a USD 45.6 billion trade deficit with India.
This is where India ends up in a tight spot, as the United States has a USD 45.6 billion trade deficit with India. | Pixabay
According to the US government, the total goods trade between the US and India was an estimated USD 129.2 billion in 2024. U.S. goods exports to India in 2024 were USD 41.8 billion, up 3.4 percent (USD 1.4 billion) from 2023. U.S. goods imports from India totaled USD 87.4 billion in 2024, up 4.5 percent (USD 3.7 billion) from 2023.
The U.S. goods trade deficit with India was USD 45.6 billion in 2024, a 5.4 percent increase (USD 2.4 billion) over 2023.
US Exports To India
Apart from headline products, that found a mention earlier, the key US exports to India includes a catalogue of good including Oils, Minerals, Lime and Cement (35.3 per cent of the total exports to the country), Stone, Glass, Metals, and Pearls (16.4 per cent of such total),
In addition US also brings chemicals, plastics, rubber, and leather goods (12.8 per cent of such total) to India.
