India's $23 Billion Tariff Gambit: Protecting $66 Billion Exports from US Reciprocal Tariffs

India is contemplating a drastic action to slash duties on more than half of its $23 billion worth of US imports to shield $66 billion of exports vulnerable to impending US retaliatory tariffs. Sources indicate that India is willing to cut duties on 55% of US products, which could lower rates from the existing 5-30% to as low as zero in certain instances.

Important points:

1.India puts 87% of its $66 billion US exports at risk due to reciprocal tariffs

2.It offers to reduce tariffs on $23 billion in US imports

3.Reductions in tariffs on the condition of relief from US reciprocal duties

4.Negotiations to commence as US trade team visits India March 25-29

This tactical move follows as India tries to counter the effect of US President Trump's global retaliatory tariffs scheduled to go into effect on April 2. The tariff reductions proposed are India's biggest trade concession in years, which underscores the need for a bilateral trade deal.

Sources: Reuters, Economic Times, March 25, 2025