US asks India to exempt most items from import duty

06-Mar-2025 08:42 PM

The U.S. has made a significant request to India, asking the country to reduce customs duties on most products except for agricultural items.

This request comes as part of a broader trade policy where the U.S. aims to implement what is known as a "Reciprocal Tariff." Essentially, the U.S. is saying that the same import duties imposed by India on U.S. products should be applied to Indian products in the U.S. The new tariffs on Indian goods are set to take effect from April 2nd.

This move reflects the Trump administration’s stance that countries, including India, have unfair or unilateral trade practices that the U.S. can no longer tolerate.

President Trump has been vocal about his belief that trade policies, like those in India, put American businesses at a disadvantage. The issue of high import duties in India was also raised during the Indian Prime Minister's visit to the U.S. last month.

The Indian government has been in talks with U.S. trade representatives, and while some progress is being made, India is still hesitant to agree to the U.S. demand to reduce the import duty on automobiles to zero. However, India has expressed willingness to consider lowering duties on other products.

It looks like time is running short for the two countries to reach an agreement before the deadline