India is planning a $23 billion tariff cut on US imports to mitigate the impact of new American tariffs. This reduction aims to improve trade relations with the US and protect India's $66 billion exports.
India Seeks Trade Concessions
According to government sources, India is considering reducing tariffs on more than half of US imports in hopes of improving trade relations. This comes in response to the upcoming new reciprocal tariffs set to be imposed by US authorities starting April 2. Approximately 55% of products currently subjected to duties between 5% and 30% are expected to see reduced tariffs.
Pharmaceuticals and Automobiles at Risk
Indian officials emphasize that any reduction in tariffs on US imports should be reciprocated by concessions from the US. This is particularly crucial for sectors that rely on exports to the US, such as pharmaceuticals and automobiles, which may feel the greatest negative impact.
Businesses Welcome Tariff Reductions
Some Indian companies support the tariff reductions, believing that increased competition will benefit consumers. Sanjeev Banga, head of international business at Radico, noted that reduced tariffs could help the company cut costs and improve its products' competitiveness in international markets.
India aims to expand its trade relations with the US and other countries, seeking to create competitive export conditions in the long term. A more liberal trade environment is expected in the near future, with tariff reductions and improved economic conditions.
