India has offered to significantly narrow the average tariff gap with the United States—from 13% to under 4%—as part of ongoing efforts to secure a broad trade agreement with the Donald Trump administration, The Times of India reported, citing Reuters sources.
This move, described as one of the most substantial trade barrier revisions by India in recent times, is part of the government’s attempt to gain exemptions from current and future tariff hikes imposed by the US. The discussions come in the wake of President Trump’s temporary suspension of proposed reciprocal tariffs—including a 26% duty on Indian imports—while negotiations progress. Currently, Indian goods entering the US face a 10% base tariff during the 90-day pause declared by Trump last month.
According to The Times of India, bilateral trade between India and the United States touched $129 billion in 2024, with India enjoying a surplus of $45.7 billion. The proposed reduction in tariff differential is calculated across all traded goods, regardless of volume, and could offer India improved market access for key exports.
Indian negotiators have reportedly proposed eliminating duties on 60% of tariff lines in the initial phase of the deal. Preferential access for US products to India, including reduced tariffs, already covers about 90% of items, said one Indian official quoted in The Times of India. Meanwhile, a delegation from India is expected to travel to the US later this month to push the negotiations forward.
India’s demands include favourable treatment for a range of export sectors such as gems and jewellery, leather, textiles, chemicals, plastics, oilseeds, seafood, and horticulture, the report said. Officials argue that better terms of trade would provide Indian exporters with an edge over competitors from other countries.