In order to reach a trade agreement with Trump, India proposed to reduce the tariff differential by two-thirds

ChainCatcher news, according to Jin Shi reports, two sources said that in order to reach a trade agreement with Trump, India has proposed to reduce the tariff gap with the United States from the current nearly 13% to less than 4%, in exchange for Trump's exemption from "current and potential" tariff increases.

This would mean that the average tariff gap between India and the United States (calculated across all products, regardless of trade volume) would decrease by 9 percentage points, marking one of the most significant changes by the world's fifth-largest economy to lower trade barriers.

The United States is India's largest trading partner, with a total bilateral trade of about $129 billion in 2024. The current trade balance is favorable to India, with India's trade surplus with the United States amounting to $45.7 billion.