India’s US Tariff Cut Not an ‘Extraordinary Step’ – Similar Deals Made With These Countries!

India’s decision to lower tariffs for the US is not unusual, as it has made similar agreements with Australia, the UAE, Switzerland, and Norway. Negotiations are also ongoing with the EU and the UK.

Former US President Donald Trump claimed India had imposed excessively high tariffs but has now agreed to significant reductions.

In February, India and the US agreed to negotiate a Bilateral Trade Agreement (BTA) to enhance market access, reduce trade barriers, and integrate supply chains. An Indian delegation led by Minister Piyush Goyal visited Washington in March to advance discussions.

Talks on tariffs and broader trade issues continue, with External Affairs Minister S. Jaishankar confirming efforts toward a separate trade agreement.

India’s US Tariff Cut Not an ‘Extraordinary Step’ – Similar Deals Made With These Countries!

India’s recent decision to reduce tariffs for the United States aligns with its broader strategy to diversify trade partnerships and deepen integration into global supply chains. The government’s emphasis on existing agreements with countries such as Australia, the UAE, Switzerland, and Norway underscores a deliberate approach to fostering economic resilience. For instance, the trade pact with Australia, finalized in 2022, focused on sectors such as critical minerals, pharmaceuticals, and wine, enhancing two-way investment flows.

Similarly, the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, signed the same year, streamlined tariffs on gems, jewelry, textiles, and engineering goods, boosting bilateral trade to $84 billion in 2023-24. These agreements highlight India’s intent to balance market access with strategic economic interests—a template now being extended to negotiations with the EU and the UK, where agriculture, digital trade, and sustainability are key discussion points.

Former President Trump’s remarks on India’s tariff cuts have sparked mixed reactions. While his praise underscores a thaw in trade tensions, experts caution that the move is part of a calibrated strategy rather than a concession. Indian officials have reiterated that tariff adjustments are reciprocal, aimed at securing better access for Indian exports such as textiles, pharmaceuticals, and IT services in the U.S. market. Analysts note that U.S. industries, including aerospace, dairy, and medical devices, could benefit significantly, though concerns linger about competition for India’s domestic sectors, particularly agriculture and manufacturing.

The ongoing Bilateral Trade Agreement (BTA) negotiations, targeting a 2025 timeline, are expected to address complex issues such as intellectual property rights, digital trade, and regulatory harmonization. During Commerce Minister Piyush Goyal’s March visit to Washington, both nations agreed to establish working groups on critical minerals and clean energy, signaling a focus on future-oriented sectors. These efforts build on the Initiative on Critical and Emerging Technology (iCET), launched during Prime Minister Modi’s 2023 U.S. visit, which aims to deepen collaboration in defense, AI, and semiconductor supply chains.

External Affairs Minister Jaishankar’s comments in London reflect India’s balancing act between protecting domestic interests and embracing global integration. Outstanding issues include U.S. demands for stricter IP protections—a sticking point for India’s generic drug industry—and India’s push for easier visa access for professionals. Meanwhile, the emphasis on supply chain collaboration aligns with global shifts toward “friend-shoring,” as both nations seek to reduce reliance on China. This strategy complements frameworks such as the Indo-Pacific Economic Framework (IPEF), where India participates in key areas like supply chain resilience and clean energy.

Geopolitically, the tariff cuts and trade negotiations reinforce India’s role as a counterweight to China in Indo-Pacific trade dynamics. Economically, they complement initiatives such as Production-Linked Incentives (PLI) to boost domestic manufacturing while attracting foreign investment. As talks progress, the challenge lies in reconciling U.S. demands for market liberalization with India’s protectionist safeguards—a delicate balance that will shape the future of one of the world’s most consequential trade relationships.