India May Escape Steep US Tariff Hikes As Trade Negotiations Progress With Trump Administration: Report

India may secure a partial exemption from the United States (US) reciprocal tariffs set to take effect on 2 April, as trade negotiations between the two nations advance positively, reported India Today.

Government sources indicate that India is unlikely to be grouped with China, Mexico, and Canada, which are expected to face steep tariff hikes under Washington’s revised trade strategy.

Discussions between Indian and US officials are reportedly focusing on a tailored, sector-wise approach, which could lead to a gradual implementation of new trade measures rather than an across-the-board tariff hike.

A government source said that certain high-demand goods with substantial trade volumes may see only moderate tariff increases,  suggesting that Indian exporters could face a less severe impact compared to other nations.

In return, India is pushing for lower US tariffs on key sectors, particularly in industries where Indian exports hold a significant share in the American market.

Negotiators are expected to finalise the broad contours of a new deal within the next three days, sources confirmed.

The trade talks come against the backdrop of India’s internal assessment, which found that US reciprocal tariffs could impact up to 87 per cent of Indian exports to the US, worth $66 billion.

To mitigate this, India has expressed willingness to reduce tariffs on over 55 per cent of US imports, currently taxed between 5 per cent and 30 per cent. 

While the ongoing discussions remain constructive, US officials are reportedly pressing India for additional trade concessions. 

The US has been recalibrating its tariff strategy amid global trade realignments, and India’s potential exclusion from harsher tariff treatment signals Washington’s recognition of its distinct trade relationship with New Delhi.

A high-level US delegation, led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, arrived in India on Tuesday (25 March) to fast-track negotiations. The goal is to finalise the deal before the 2 April deadline, ensuring minimal disruption to bilateral trade.

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