India Offers "Deep" Tariff Cuts in Talks with US, but Retains High Leves on Sensitive Agricultural Commodities

India has made significant concessions in talks with the US, offering deep cuts to its import tariffs on a range of goods, but is refusing to budge on sensitive agricultural commodities such as grains, dairy products, and almonds, say sources close to the negotiations. The Indian government is racing to secure a preliminary trade agreement with the US before President Trump's threatened 26 per cent "reciprocal tariff" comes into effect on July 9. While the exact scope of India's concessions remains unclear, sources suggest that the country may cut tariffs on less sensitive farm products, oil, and gas imports. However, India's trade negotiators are taking a firm line on preserving its hefty duties on core agricultural commodities, which employ millions of Indians.

Key Takeaways:

• India has offered deep cuts to its import tariffs on a range of US goods, but retains high levies on sensitive agricultural commodities such as grains, dairy products, and almonds.
• India may cut tariffs on less sensitive farm products, oil, and gas imports, but is taking a firm line on preserving its hefty duties on core agricultural commodities.
• The Indian government is racing to secure a preliminary trade agreement with the US before President Trump's threatened 26 per cent "reciprocal tariff" comes into effect on July 9.
• India's trade negotiators have signalled flexibility on reducing tariffs on US goods made by labour-intensive industries, including gems and jewellery, textiles, footwear, leather, and handicrafts.
• India will push for social security payment exemptions for Indian workers posted to the US on short-term visas.
• The Indian commerce ministry declined to comment on the talks, while the White House, US commerce department, and Office of the US Trade Representative did not respond to requests for comment.

Statistics:

• 70-80 per cent: current tariffs imposed by India on US rice imports.
• 30-60 per cent: current tariffs imposed by India on US dairy products.
• 2.5-3 per cent: tariffs imposed by India on imported oil and gas.
• 120 per cent: current tariffs imposed by India on imported almonds.
• 26 per cent: President Trump's threatened "reciprocal tariff" on all Indian goods from July 9.

Sources:

• "Two people with knowledge of the negotiations" (no further details given in the original text).
• "One of the people familiar with India's stance on the talks" (no further details given in the original text).
• "Indian trade officials have privately said" (no further details given in the original text).