As Trump starts trade war, India lowers tariffs to facilitate US exports
India lowered the duty on fish hydrolysate for the manufacture of aquatic feed from 15 per cent to 5 per cent, a move that directly impacts U.S. exports, which amounted to $35 million in FY2024, finds GTRI
Chennai: While the US President imposed tariffs on Canada, China and Mexico, India lowered the duties on products that benefit American exports.
On India’s Budget day, the US imposed a 25 per cent tariff on imports from Canada and Mexico, a 10 per cent tariff on energy products from Canada, and an additional 10 per cent tariff on China.
Amidst Trump’s criticism of India's tariff policies, India reduced tariffs on technology, automobiles, industrial inputs, and waste imports, facilitating trade with the US.
India lowered the duty on fish hydrolysate for the manufacture of aquatic feed from 15 per cent to 5 per cent, a move that directly impacts U.S. exports, which amounted to $35 million in FY2024, finds GTRI.
Duties on Ethernet Switches (Carrier-Grade) have been reduced from 20 per cent to 10 per cent. The US exported $653.4 million worth of these products to India in FY2024. Similarly, India has lowered the tariff on synthetic flavouring essences from 100 per cent to 20 per cent, a category in which US exports stood at $21 million in FY2024.
In the space sector, tariffs on ground installation for satellites, including spares and consumables, have been reduced to zero, benefiting American exporters who supplied $92 million worth of these products in FY2023. However, in FY2024, imports dropped significantly to $0.07 million, suggesting a sharp decline in trade activity in this category.
For the automobile sector, India has reduced tariffs on motorcycles based on engine capacity. For motorcycles with an engine capacity below 1,600cc, the tariff has been cut from 50 per cent to 40 per cent, while for motorcycles above 1,600cc, the tariff has been slashed from 50 per cent to 30 per cent. US motorcycle exports to India stood at $3 million in FY2024, and this tariff cut could help expand market access for American manufacturers.
Additionally, India has eliminated tariffs on specific waste and scrap items, reducing duties from 5 per cent to zero. The U.S. exported a total of $2.5 billion worth of waste and scrap of all types to India in FY2024.�
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