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India offers to slash tariff gap by two-thirds in dash to seal trade pact with Trump
The United States is India's largest trading partner, with bilateral trade totalling some $129 billion in 2024. The trade balance is currently in favour of India, which runs a $45.7 billion surplus with the U.S.
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Reuters - Fri, 09, May 2025
- 15:35 EDT
- 313
FILE PHOTO: U.S. President Donald Trump and Indian Prime Minister Narendra Modi shake hands as they attend a joint press conference at the White House in Washington, D.C., U.S., February 13, 2025. / REUTERS/Kevin Lamarque//File Photo
India has offered to slash its tariff gap with the U.S. to less than 4 percent from nearly 13 percent now, in exchange for an exemption from President Donald Trump's "current and potential" tariff hikes, two sources said, as both nations move fast to clinch a deal.
This would mean that the average tariff differential between India and the U.S., calculated across all products without weighting for trade volume, would be reduced by 9 percentage points, in one of the most sweeping changes to bring down trade barriers in the world's fifth largest economy.
Also Read: Trump says he has 'potential deals' with India, South Korea, Japan
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