Plan to Retain 20–25% Import Duty on U.S. Products

30-Jul-2025 01:37 PM

New Delhi. The Government of India is preparing to reduce the high rate of import duty on selected products of America as a temporary measure so that the ongoing bilateral trade talks between the two countries can progress and reach a conclusion.

It is understood that during the trade talks, India can adopt a flexible stance and reduce the rate of duty on selected American products / goods to 20-25 percent.

America had announced to impose new tariff on various countries from August 1. This date is very near and hence India may have to take a decision soon.

But informed sources say that India is not too worried about this deadline of August 1 and neither does it want to take any hasty decision. Instead, it is willing to have detailed trade discussions with the team of American negotiators when they come to India in mid-August. India's objective is to enter into a comprehensive and integrated bilateral trade agreement which can be finalized in September or October.

It is noteworthy that America wants to ensure the entry of its soybean, its products and maize in Indian markets and for this it is putting tremendous pressure on India but India is not ready for this because America mainly produces maize and soybean of GM category whereas in India its production, import business and use is completely banned.

Although India imports soybean from African countries and maize from countries like Myanmar but firstly it is of non-GM or traditional category and secondly, its quantity is also limited. America is aware of this reality but still it does not want to let go of the huge market of India.

Analysts say that if India has to maintain the export of its products to America at minimum duty or zero duty then it may have to reduce the import duty on some American products because the Trump administration is adopting a 'tit for tat' strategy in the matter of customs duty. This will be valid for most of the countries of the world including India.