Indian government is considering $23 billion in tariff reductions on U.S. imports to avoid reciprocal tariffs threatened by President Trump. The move is aimed at improving trade relations and reducing the impact on Indian exports, which face tariffs ranging from 5% to 30%.
Key Points
India considering $23 billion in tariff reductions on U.S. imports
Tariffs on 55% of U.S. goods could be reduced
Trade-weighted average tariff for the U.S. is 2.2% compared to India's 12%
President Trump has criticized India's tariffs as being one-sided
India may face reciprocal action on April 2 if tariffs are not reduced
Pros
Improving trade relations with the United States
Reducing the impact on Indian exports facing tariffs
Cons
Loss of income for India due to reduced tariffs
Potential negative impact on Indian industries, especially labor-intensive ones