India is seeking to enhance its trade relations with the United States by offering tariff cuts on certain farm imports, including almonds and cranberries. This strategy aims to counteract the reciprocal tariffs that President Donald Trump plans to impose shortly.
Unlike other countries such as China, Canada, and those in the European Union, India is actively engaging with the Trump administration, opening the door to reducing tariffs on over $23 billion worth of U.S. imports. Recent discussions in New Delhi involved Brendan Lynch, the assistant U.S. trade representative for South and Central Asia.
During these meetings, India expressed willingness to lower tariffs on various agricultural products, including bourbon whiskey and items like walnuts, pistachios, and lentils. Indian Trade Minister Piyush Goyal noted that trade negotiations are “progressing well,” emphasizing that a beneficial trade pact is a priority for India.
Despite these concessions, there remains hesitation within Indian government circles regarding tariff reductions on dairy products, rice, wheat, and maize. Furthermore, India aims to improve access for its own agricultural exports, such as pomegranates and grapes, to the U.S. market.
Negotiators anticipate reaching an agreement on the framework for a bilateral deal, which is expected to be finalized by fall 2025. In terms of trade volume, U.S. agricultural and related product exports to India reached nearly $2 billion in 2024, with a significant portion coming from alcoholic beverages and fresh produce.
Conversely, India’s exports to the United States amounted to approximately $5.5 billion, highlighting the importance of these ongoing negotiations for both nations.