India is prepared to lower tariffs on key US agricultural imports such as almonds and cranberries in a bid to prevent retaliatory trade measures from the Trump administration.
The concession is part of India’s broader strategy to ease trade tensions and maintain favourable relations with Washington.
During ongoing trade negotiations with the visiting US team, headed by Brendan Lynch, the assistant US trade representative for South and Central Asia in New Delhi, the Indian side discussed the possibility of tariff reductions on several American products. Among the key items on the table are bourbon whiskey, almonds, walnuts, cranberries, pistachios, and lentils. The negotiations, originally meant for for three days, are being fast-tracked and could conclude a day early, on Friday evening.
While other major economies, including China, Canada, and the European Union, have taken a firmer stance against US tariff policies, India has opted for a more conciliatory approach. Recent reports indicate that New Delhi is open to reducing duties on more than half of US imports, worth approximately $23 billion.
Union Commerce Minister Piyush Goyal expressed optimism about the talks, describing them as “progressing well.” He emphasised that the proposed trade deal, though still in the works, would bring mutual benefits to both nations.
A senior Indian official said securing a favourable agreement remained a priority for India. Negotiators have tailored their offers to align with US interests, especially in agriculture and select industrial sectors.
Officials are tight-lipped on the course of the talks due to the sensitive nature of the discussions. The Commerce Ministry has not provided an official response to the media, while a spokesperson from the US embassy in New Delhi declined to comment.
India has already taken steps to adjust its tariff structure. Last month, duties on bourbon whiskey were reduced from 150% to 100%. Import taxes on agricultural goods such as almonds, walnuts, and cranberries range between 30% and 100%, while lentils are taxed at approximately 10%.
However, resistance remains within India’s policy circles regarding tariff cuts on dairy products, rice, wheat, and maize. Instead, India is pushing for improved access to the US market for its own agricultural exports, particularly pomegranates, grapes, and rice.
Negotiators are working towards finalising the framework for the first phase of the trade agreement, which could be signed later this year.
In 2024, US agricultural and related exports to India reached nearly $2 billion, with alcoholic beverages accounting for $452 million and fruits and vegetables contributing $1.3 billion. Meanwhile, India’s exports to the U.S. stood at around $5.5 billion.
