US Commerce Secretary Howard Lutnick has called on India to lower its high tariffs, suggesting that such a move could pave the way for a significant bilateral trade agreement between the two nations. In an interview with India Today, Lutnick emphasized that India’s tariffs, among the highest globally, necessitate reconsideration to enhance the “special relationship” with the United States. He proposed that opening up sensitive sectors, including agriculture, could be mutually beneficial, potentially by setting specific quotas and limits.
This appeal comes in the context of the United States’ plan to implement reciprocal tariffs on trade partners, including India, starting in early April. The move aims to balance trade by imposing equivalent tariffs on imported goods from countries that levy tariffs on U.S. products.
In response, India’s Commerce Minister Piyush Goyal has traveled to the United States for discussions, seeking clarity on the impending reciprocal tariffs and exploring potential concessions to reduce tariffs and bolster bilateral trade. India has expressed willingness to discuss tariff reductions on industrial products but remains cautious about agricultural products to protect its farmers.
However, Indian farmer organizations have expressed strong opposition to opening the agriculture sector to U.S. trade, labeling such a move as potentially “suicidal” for the already distressed sector. They argue that easier market access for U.S. agricultural products could adversely affect Indian farmers’ livelihoods, potentially leading to increased hardships.
The Global Trade and Research Institute (GTRI) has also weighed in, suggesting that while the U.S. proposals are framed as mutually beneficial, they predominantly serve U.S. interests at the expense of India’s economic and strategic priorities.
These developments underscore the complexities in U.S.-India trade negotiations, particularly concerning the agriculture sector, as both nations navigate the challenges of balancing domestic interests with the pursuit of enhanced bilateral trade relations.
