According to two government sources, India is offering to reduce tariffs on American agricultural products such as almonds and cranberries to prevent expected reciprocal tariffs by President Donald Trump. In contrast to other countries like China and the European Union, India is actively trying to pacify the Trump administration by considering tariff cuts on more than half of U.S. imports valued at $23 billion. Discussions in New Delhi with Brendan Lynch from the U.S. Trade Representative's office for South and Central Asia have led to agreement on lowering tariffs on items like bourbon whiskey, almonds, walnuts, cranberries, pistachios, and lentils. The negotiation process is expected to be finalized by late Friday. Indian Trade Minister Piyush Goyal has expressed optimism about the progress of trade talks, emphasizing the mutual benefits of the ongoing bilateral trade agreement. By aligning its offers with U.S. priorities in agriculture and various sectors, India aims to secure a favorable deal. The sensitive nature of the talks has kept both sources anonymous. While the Indian trade ministry did not respond to inquiries, the U.S. embassy spokesperson refrained from commenting on private diplomatic discussions. A recent reduction in tariffs on bourbon whiskey was noted, with duties ranging from 30% to 100% on agricultural products like almonds, cranberries, and walnuts. However, barriers remain for dairy products, rice, wheat, and maize, although India is seeking expanded market entry for fruits like pomegranates, grapes, and rice into the U.S. Negotiators are anticipated to outline the initial phase of the bilateral agreement by the fall of 2025, aiming to enhance the trade relationship further. In 2024, U.S. agricultural exports to India amounted to nearly $2 billion, with alcohol beverages accounting for $452 million, and fruits and vegetables for $1.3 billion, while India's exports to the U.S were valued at approximately $5.5 billion.
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