A senior United States trade delegation is in India from March 25 to 29 for a round of bilateral trade discussions, just days before Washington plans to impose reciprocal tariffs on a range of Indian exports starting April 2.
The team, led by Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, is expected to engage in wide-ranging talks with Indian officials. While both sides have remained tight-lipped on the finer details, the agenda appears to include tariff negotiations, investments, and progress on a bilateral trade agreement (BTA).
According to officials familiar with the matter, India has shown a willingness to offer tariff cuts on a selection of American products under the proposed BTA. These cuts, though not finalised yet, are being seen as part of a larger package that could encourage US investments in India.
Indian trade agreements with developed countries have increasingly taken the shape of a “give-and-take” — with tariff relaxations offered in return for investment commitments.
The timing of the visit is crucial. On April 2, the US is expected to impose reciprocal tariffs on several Indian products. These include agricultural goods, meat, processed food, automobiles, diamonds, gold jewellery, chemicals and pharmaceutical products — areas where India currently maintains significantly higher tariff rates than the US.
In fact, India’s average tariff rate sits at 17%, compared to the US rate of just 3.3%, according to a recent report by the Indian Council for Research on International Economic Relations (ICRIER).
However, Indian officials say there is still no clarity on whether the US will apply the reciprocal tariffs across sectors or target specific products. An investigation to determine the exact rates is still underway in the US.
Despite the upcoming tariff move by the US, India has not announced any retaliatory action. Instead, the current talks are centred on working out the first phase of the BTA.
“Reciprocal tariffs are not something we are engaging in because it is a US policy,” a Commerce Ministry official said. “We are working on defining the scope of the first tranche of the bilateral trade agreement and are not negotiating retaliatory measures.”
The official added that both sides are laying their respective demands on the table, but India’s preference remains towards resolution through dialogue.
Last week, US President Donald Trump had reiterated his stance on India’s high tariffs. “I have a very good relationship with India, but the only problem I have with India is they’re one of the highest tariffing nations in the world,” Trump told Breitbart News. He indicated that the US would begin imposing matching tariffs from April 2, unless India makes significant changes.
The US Embassy in India said the visit would cover both trade and investments. India’s Commerce and Industry Ministry also described the talks as part of “regular” bilateral trade engagements, noting that the goal is to deepen “economic ties and supply chain integration”.
So while the reciprocal tariff threat looms, both countries are opting to continue discussions and explore ways to smoothen trade relations.
