In order to reach a trade agreement with Trump, India proposes to reduce the tariff gap by two-thirds

According to two sources, in order to reach a trade agreement with Trump, India has proposed to reduce the tariff differential with the United States from the current nearly 13% to less than 4% in exchange for Trump's "current and potential" tariff exemptions. This will mean that the average tariff gap between India and the United States (calculated by all products, excluding trade volume) will decrease by 9 percentage points, which is one of the most thorough changes made by the world's fifth largest economy to reduce trade barriers. The United States is India's largest trading partner, with a bilateral trade volume of approximately $129 billion in 2024. The current trade balance is favorable for India, with a trade surplus of $45.7 billion with the United States. (Golden Ten)