India has proposed slashing its average tariff gap with the U.S. to below 4% from nearly 13% in exchange for exemption from current and future tariff hikes under President Donald Trump, two Indian officials said. The offer, part of a sweeping trade proposal, would cut duties to zero on 60% of tariff lines and provide preferential access to nearly 90% of U.S. goods.
The U.S. is India’s largest trading partner, with bilateral trade totalling $129 billion in 2024 and India running a $45.7 billion surplus. Trump has paused his planned 26% reciprocal tariffs on India for 90 days while negotiating deals, keeping a 10% base tariff in place. His recent deal with the U.K. is seen as a template and India and Japan are next in line for deals. A delegation from India is expected to visit Washington later this month, potentially including Trade Minister Piyush Goyal.
