India-U.S. Trade Deal Hinges on Tariff Reductions

U.S. Commerce Secretary Howard Lutnick emphasized the need for India to reduce its high tariffs on U.S. imports to foster a 'grand' bilateral trade deal, particularly in sensitive sectors like agriculture. This follows proposed reciprocal tariffs by the U.S., which could significantly impact India's gem and jewellery exports, a sector employing thousands and contributing heavily to India's economy. SEEPZ, responsible for a major share of India's jewellery exports to the U.S., could face severe challenges if tariffs are imposed, potentially shifting U.S. sourcing to countries with lower tariffs. Industry leaders have urged the Indian government to negotiate a fair duty structure to maintain its market share in the U.S. Recent meetings between U.S. and Indian officials aim to resolve tariff disputes and achieve a $500 billion trade goal by 2030.