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In order to reach a trade agreement with Trump, India has proposed to reduce two-thirds of the tariff differential.
In order to reach a trade agreement with Trump, India has proposed to drop its tariff differential with the United States from nearly 13% to less than 4% in exchange for Trump's exemption from current and potential tariff increases, according to two sources. This would mean a reduction of 9 percentage points in the average tariff differential between India and the United States (calculated across all products, regardless of trade volume), marking one of the most significant changes by the world's fifth-largest economy to lower trade barriers. The United States is India's largest trading partner, with a total bilateral trade volume of approximately 129 billion dollars in 2024. The current trade balance is favorable to India, with India having a trade surplus of 45.7 billion dollars with the United States. ( Jin Shi )