The India-US trade deal is under discussion, and agriculture tariffs have become a major issue. Donald Trump’s administration is pushing for lower tariffs on US agricultural products to increase exports. This could create challenges for the Indian government.
Trump’s Interest in Agriculture
According to a report by The Indian Express, the US wants India to reduce tariffs on American farm products. The Trump administration is prioritizing agriculture exports to help American farmers.
Why Is Trump Focusing on Agriculture?
Farmers in Midwestern US states have been strong supporters of Trump since 2016. In the recent elections, he gained even more votes in agriculture-dependent regions. Reports suggest that in over 100 farming counties, Trump received more than 80% of the votes.
By reducing tariffs in India, Trump hopes to please American farmers. However, this demand creates problems for the Indian government.
Why Is This a Challenge for India?
The Indian government imposes high tariffs on foreign agricultural products to protect Indian farmers. If India reduces tariffs on US farm products, it could hurt Indian farmers’ income.
Understanding the Tariff Gap Between India and the US
Recently, India reduced basic customs duties (BCD) on some products in its budget. However, the US claims that Indian tariffs on agricultural products are still very high compared to US tariffs.
- US agricultural tariff (MFN – Most Favored Nation rate): 5%
- India’s agricultural tariff: 39%
Indian officials believe that lowering tariffs could increase agricultural trade between the two countries and give Indian farm exports better access to the US market.
This trade negotiation will be crucial for both American and Indian farmers. What happens next will depend on how both governments balance trade and domestic interests. 🌾🇮🇳🇺🇸
