India seeks tariff probation as it meets U.S. officials

When U.S. officials arrived at talks on the country on a bilateral trade agreement on Tuesday, the Indian government would seek to exempt President Donald Trump from reciprocity tariffs, people familiar with the matter said.

The New Delhi Embassy said in a statement on Monday that Brendan Lynch, the U.S. Assistant U.S. Trade Representative for South and Central Asia, will visit India from March 25 to 29 as part of ongoing trade discussions.

People familiar with the matter said New Delhi officials are expected to provide a basis for reciprocal tariffs, a case scheduled to take effect on April 2, demanding that it is unwilling to be determined because the discussion is private.
They said the two sides were expected to discuss the framework of the bilateral trade agreement before formal negotiations began. In addition to trade officials, Lynch may also meet with Indian Foreign Minister Vikram Misri during his visit, one of the people said.

“We look forward to fruitful discussions with the upcoming U.S. delegation to expand and deepen our bilateral trade and economic ties in a mutually beneficial way,” the Ministry of Commerce and Industry of India said in a statement.

India has one of the highest average tariff rates among major economies, a key goal of Trump’s mutual-related taxes. The U.S. president often sees India’s import taxes as unfair to U.S. businesses and said last week that the country will not avoid being hit by similar duties. Since Trump took office, the Modi administration has taken several steps to appease U.S. leaders’ main concerns about his trade and immigration. Modi visited the White House in February, and the two leaders agreed to raise trade and work to reach a bilateral deal by November. They also discussed India’s purchase of more energy and weapons from the United States. India has lowered import taxes on a range of goods including bourbon and high-end motorcycles, such as Harley Davidson Inc.

Lynch’s visit reflects Washington’s commitment to advance its trade relations with India, the U.S. Embassy said Monday.

“We value the ongoing participation with the Indian government in trade and investment and look forward to continuing these discussions in a constructive, equitable and forward-looking manner,” it said in a statement.