Trump administration calls out India’s high tariffs as reciprocal duties loom

Bloomberg describes in a fresh article that as reciprocal tariffs loom, the Trump administration has called out India for its steep tariffs on American farm products, adding fuel to the fire ahead of critical trade negotiations.

With the stakes higher than ever, the White House is pushing India to ease its agricultural restrictions, a move that could reshape trade dynamics between the two nations.

“You have 100% tariff from India on American agricultural products,” White House Press Secretary Karoline Leavitt told reporters. Leavitt also pointed to tariff rates from the European Union, Japan, and Canada, signaling that these nations could be potential targets for President Trump’s upcoming tariffs. “This makes it virtually impossible for American products to be imported into these markets,” she added.

Leavitt’s remarks come ahead of Washington’s announcement of reciprocal tariffs on April 2, heightening uncertainty among global policymakers. While India has recently made significant tariff cuts on various American goods, such as textiles and motorcycles, the US has called on India to extend further concessions, particularly in the agricultural sector.

A new report from the US Trade Representative on foreign trade barriers, highlighted India’s high tariffs. According to the report, India imposes a 39 per cent tariff on agricultural goods - eight times the tariff rate that the US applies. The report also noted that India levies high tariffs on a range of goods, including vegetable oils, apples, corn, coffee, raisins, and walnuts, based on 2023 data.

In addition to these tariffs, the report flagged non-tariff barriers in India, including import bans and licensing requirements in certain sectors.

Agriculture is a particularly sensitive sector in India, where protests from farmers have previously called for the suspension of all free trade agreements. Despite this, India has been reviewing several demands from the US. Among the proposed changes, India is considering lowering duties on products like pecans, pulses, non-genetically modified soybeans, and dried distilled grains soluble—a by-product of ethanol production used in animal feed.

India has already taken steps to reduce import taxes on several goods, including bourbon whiskey and high-end motorcycles, such as those made by Harley Davidson Inc. The two nations are working towards finalizing a trade deal, which is expected to be concluded around October or November.

By Naila Huseynova