To Secure Trade Deal with Trump, India Proposes Two-Third Cut in Tariffs

On May 9th, two sources disclosed that in an attempt to reach a trade deal with Trump, India has put forward a proposal to lower its tariff differential with the United States from the present nearly 13% to less than 4%. In return, Trump would be granted an "existing and potential" tariff hike exemption. This would lead to a 9-percentage-point decrease in the average tariff gap between India and the United States (calculated based on all products, regardless of trade volume), making it one of the most substantial alterations made by the world's fifth-largest economy to reduce trade barriers. The United States is India's largest trading partner, and bilateral trade is expected to reach approximately $129 billion by 2024. Currently, the trade balance favors India, with India enjoying a trade surplus of $45.7 billion with the United States. (Jinshi)