The Indian government is considering reducing tariffs on certain U.S. products after former U.S. President Donald Trump announced strict reciprocal tariffs on Indian imports.However, the government plans to lower duties only on products that will not harm local manufacturers. Ministries are working to identify such products to ensure that local industries remain unaffected despite tariff reductions.

As part of the upcoming Bilateral Trade Agreement (BTA) between India and the U.S., India plans to increase imports from the U.S. Both countries have set a target to boost trade to $500 billion by 2030, which is double the current trade volume. The Indian government is focusing on reducing tariffs mainly on low-volume imports while holding discussions with companies in the automobile and auto components sectors. Special attention is also being given to ensuring that the agricultural sector does not suffer losses.

Currently, India exports vehicle parts worth ₹1.2 lakh crore annually to the U.S., which imposes no import duty on them. However, India imposes a duty of 5% to 15% on imported auto parts. This issue was discussed in BTA negotiations. In the recent budget announced on February 1, the Indian government reduced import duties on certain U.S. products, such as bourbon whiskey (from 150% to 100%), seafood, scrap materials, Ethernet switches, and motorcycles. Experts believe that reducing tariffs on electric vehicles will not significantly impact Indian companies, as EV trade between India and the U.S. remains minimal.