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India cuts tariffs to avert tariff standoff with Trump
India has found an elegant way to sidestep fresh US tariffs by offering a major concession to President Donald Trump. New Delhi has agreed to significantly lower import duties on 55% of American goods, covering a trade volume worth a whopping $23 billion.
The reason for this generous move is straightforward arithmetic: Trump's proposed tariffs could hit as much as 87% of India's exports to the United States, potentially jeopardizing $66 billion in trade. Currently, India's tariffs on American products range from 5% to 30%, while the average US tariff is much lower, around 2.2%.
Officials in New Delhi have made it clear that they do not want to lose the United States as a major trade partner. Despite Washington's substantial $45.6 billion trade deficit with India, the Indian government is choosing cooperation over confrontation.
Earlier reports indicated that India had already agreed to reduce tariffs on US automobiles to avoid triggering a full-blown trade war. According to analysts, India could still be among the countries most exposed to the ripple effects of Trump's aggressive trade policy.
© InstaFintech Group
