India considers tariff cuts on US farm goods amid Trump’s trade threats

Trade talks in progress

India agreed to reduce tariffs on bourbon whiskey and agricultural goods such as almonds, walnuts, cranberries, pistachios, and lentils during discussions with Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, a source familiar with the talks revealed.

On March 27, Commerce and Industry Minister Piyush Goyal stated that trade negotiations with the US are “progressing well,” though a formal bilateral trade pact remains under discussion.

The Ministry of Commerce and Industry declined to comment on the latest tariff talks, while a spokesperson for the US embassy in New Delhi also refrained from sharing details on private diplomatic discussions.

India's proactive approach

Unlike many other nations, India has been proactive in negotiating tariff adjustments and is open to reductions on over half of US imports valued at $23 billion, Reuters reported earlier this week.

Goyal previously stated that India and the US could offer mutual tariff reductions, leveraging their complementary economies to facilitate trade.

In February, India lowered its customs duty on bourbon whiskey from 150% to 100%.

With ongoing negotiations, further tariff adjustments could follow soon.

Trump’s evolving stance

While Trump has repeatedly criticised India’s high tariffs, he has softened his position in recent days.

Without naming specific countries, he indicated that several nations would receive trade concessions on April 2.

He also suggested that tariff policies may be more “lenient than reciprocal.”