India Proposes Two-Thirds Tariff Cut to Boost US Trade Access

India has proposed a significant reduction in its tariff differential with the United States, offering to cut it from nearly 13% to under 4% to secure exemption from President Donald Trump's current and potential future tariff hikes. This offer includes eliminating tariffs on 60% of tariff lines in the initial phase and granting preferential access to 90% of American imports, aiming to rebalance the $45.7 billion trade surplus India currently holds with the U.S. President Trump claimed that India has agreed to drop tariffs on U.S. imports to zero, though Indian officials have yet to confirm this and no specific details have been provided on affected products. The proposed tariff cuts could enhance bilateral trade, making U.S. products more affordable in India and potentially boosting exports in sectors like technology, machinery, and agriculture. While these negotiations seek to deepen economic ties and promote investment, some experts express skepticism about the feasibility of completely eliminating tariffs and caution about possible domestic industry impacts in India. Both countries are progressing toward finalizing the deal, with India and Japan reportedly next in line after the UK for trade agreements with the U.S.