Govt's Firm And Fair Stand On US Tariff Talks: India First, But Open To Some Rate Cuts

Last Updated:March 27, 2025, 11:16 IST

A source told CNN-News18 that India was ready for rate cut on some items of agricultural produce like walnuts, apple and almonds but no concessions are likely on wheat and maize

The Indian government is hopeful, given that the US has made it clear it wants to positively engage with India. (PTI)

Interest First is the buzzword when it comes to the US-India trade and tariff negotiations, even as the new tariff policy is set to come into effect in the United States on April 2.

However, sources say India has agreed to some rate cuts on selected items so that its interests can be protected. “But this does not mean that we are buckling under any kind of US pressure," a top government source told News18.

“We are ready to cut on some items of agricultural produce like walnuts, apple and almonds. But keeping in mind the sensitivity of the agricultural sector in India, on many items like wheat and maize, no concessions are likely to be given," they said.

The worry, however, is the automobile sector. US President Donald Trump has announced that 25 per cent tariff will be imposed on cars being imported to the United States. “This could affect India’s automobile industry significantly, but we are ready to slash some tariffs on bikes and smaller passenger cars. The bulwark has been created over the last few months in anticipation of tariff and thus, many sops and benefits have been announced for the Electric Vehicles sector which has seen some growth."

“GST rate cuts and cuts in customs duties give the government hope that these measures could protect our customers. This apart, Tesla has been given a level playing field as it is hoped that with increased competition, indigenous car manufacturers like Mahindra and Tata will up their performance and models."

There is also some cheer for those who love iconic American products like the Bourbon Whiskey as India has agreed to lower tariff off on the product. More such moves could follow.

Sources say the key objective is to decide the terms of reference and both sides will work on the Bilateral Trade Agreement (BTA) and timeline schedules as well.

The Indian government is hopeful, given that the US has made it clear it wants to positively engage with India. However, the government has made it clear that these are merely bilateral negotiations that apply to US and India. Other countries cannot expect similar concessions as India won’t buckle under any pressure.

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