India has long protected its agriculture sector in the interest of small farmers. © Reuters
NEW DELHI (Reuters) — India should bring down its high tariffs for the Unites States as Washington means to pursue “something grand” in a bilateral trade deal between the two countries, U.S. Commerce Secretary Howard Lutnick told India Today television on Friday.
India’s tariffs, amongst the highest in the world, require a rethinking of its “special relationship” with the U.S., Lutnick said in an interview.
His remarks come weeks ahead of U.S. President Donald Trump’s planned reciprocal tariffs from early April on trading partners, including India, which are worrying exporters across sectors ranging from autos to agriculture.
“We would like to focus on bilateral conversation just between India and the United States, bring down the tariff levels that India has, that protects some of its areas,” Lutnick said.
For sensitive sectors like agriculture, which India has long protected in the interest of its small farmers, Lutnick said a deal can be crafted with certain quotas and limits, but India must open up the sector.
After a meeting between Trump and Indian Prime Minister Narendra Modi last month, the two countries agreed to resolve tariff rows and work on the first segment of a deal by the fall this year, aiming for bilateral trade worth $500 billion by 2030.
Indian Trade Minister Piyush Goyal was on a nearly weeklong trip to the U.S. and on Tuesday met Lutnick to pursue trade talks.
The article appeared in the asia.nikkei