When the US Trade Mission visits India, tariffs, market acquisition of agricultural commodities

In areas with long-term protection of Indian imports, market access to agricultural products may be the agenda of the U.S. delegation, led by Brendan Lynch, a South and Central Asian, of the U.S. Trade Representative, traveled to India on Tuesday for a five-day visit. |Picture source: X/USIBC

In areas with long-term protection of Indian imports, access to market access to agricultural products may be the agenda of the U.S. delegation, led by Brendan Lynch, South and Central Asian, of the U.S. Trade Representative, traveled to India for a five-day visit on Tuesday (March 25, 2025).

Although the visit came before the Trump administration announced “reciprocal tariffs”, it is expected to focus on reducing import tariffs from India, U.S. Commerce Secretary Howard Lutnik [American] Corn” led to speculation that the bilateral trade agreement discussed would be more comprehensive than the “item project” negotiations.

Government sources said Mr. Modi met with Commerce Minister Piyush Goyal and Foreign Minister S. Jaishankar on Monday, and reportedly discussed the upcoming talks and tariffs.

Officials confirmed Hindu.

Mr. Walz and Mr. Vance are expected to visit separately, accompanied by his wife, Usha Vance, of Indian origin. They will start consultations later this year before U.S. President Donald Trump visits the four summits, when he and Mr. Modi are expected to announce the “first batch” of the bilateral trade agreement (BTA) between the two countries.

“As directed by leaders of both countries, India remains committed to working with the U.S. in a trade and economic field to enhance prosperity and innovation in India and the U.S. and deepen supply chain integration between the two countries,” the Commerce Department said in a statement on Monday.

Officials did not comment on the latest threat from Mr. Trump announced on Monday, which imposed an additional 25% tariff on countries that purchased oil from Venezuela. Although India, along with Iran, has zeroed oil imports from Venezuela after the Trump administration’s threat, it resumed imports from Venezuela in December 2023 after the Biden administration relaxed some sanctions. In 2024, India imported 22 million barrels from Venezala, and India’s PSU invested about $1 billion in the country.

The ministry said that the U.S. Assistant Trade Representative for South and Central Asia, Mr. Lynch, will hold “regular” trade negotiations in India from March 25 to 29, indicating that the negotiations will focus on the BTA rather than tariffs imposed in many countries including India, including April 2, and the delegation is expected to visit Gore.

“This visit reflects the continued commitment of the United States to establish a productive and balanced trade relationship with India,” a spokesperson for the U.S. embassy said on Monday.

The focus on “balanced” trade with the United States refers to regular complaints from Mr. Trump and his officials about the trade deficits encountered by the United States with different countries.

India – U.S. trade, including goods and services, is hitting $200 billion, with a trade deficit of about $45 billion, and Mr. Trump asked India to resolve the issue.

Commerce Secretary Howard Lutnik said in an interview with the “Go to Go” podcast that he raised sharp divisions in deficits and import responsibilities during Modi’s visit to Washington in February. He claimed that India’s import tax rate averaged “50%” compared to the “4%” in the United States (the average of simple tariffs in India is 17%) and India “protects its farmers.”

“I said to Prime Minister Modi, you have 1.4 billion people, you brag about how amazing your economy is… Why don’t you buy our corn bushels?” added: “So [U.S.] Farmers can’t go [India] but [Indian farmers] Can you come to us…why is it okay? ”

So far, India has allowed the market to enter a variety of American nuts, duck and apples, but analysts say Indian negotiators must now prepare to discuss a range of influx of American agricultural products, including corn, soy, cotton, cotton, rice, beans, and even dairy.

(Input with Nistula Hebbar)