Tariffs, market access for agricultural goods on agenda as U.S. trade delegation visits India

Market access to agricultural products, a long-protected area in Indian imports, could be on the agenda as a U.S. delegation, headed by Brendan Lynch, the U.S. Trade Representative’s point-person for South and Central Asia, travels to India on Tuesday (March 25, 2025) for a five-day visit.

While the visit, which comes just before the announcement of “reciprocal tariffs” by the Trump administration, is expected to focus on lowering Indian import duties, U.S. Commerce Secretary Howard Lutnik’s recent comments that he asked Prime Minister Narendra Modi why India won’t “buy a bushel of [American] corn” has led to speculation that the Bilateral Trade Agreement being discussed will be more comprehensive than an “item-by item” negotiation.

India, U.S. to focus on increasing market access, reducing tariff: MoS Finance

On Monday, Mr. Modi met Commerce Minister Piyush Goyal and External Affairs Minister S. Jaishankar, reportedly to discuss the upcoming talks and tariffs, government sources said.

Two high-powered delegations from Washington, including National Security Advisor Mike Waltz and U.S. Vice-President J.D. Vance, are also set to visit India next month, officials confirmed to The Hindu.

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Mr. Waltz and Mr. Vance, who is expected to be accompanied by his wife Usha Vance, who is of Indian origin, are expected to visit separately. They will begin consultations ahead of a visit by U.S. President Donald Trump later this year for the Quad Summit, when he and Mr. Modi are expected to announce the “first tranche” of the Bilateral Trade Agreement (BTA) between the two countries.

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

Officials did not comment on Mr. Trump’s latest threat, announced on Monday, to impose 25% additional tariffs on countries that buy oil from Venezuela. While India had zeroed out its oil imports from Venezuela, along with Iran, after threats from the previous Trump administration, it resumed imports from Venezuela in December 2023, after the Biden administration relaxed some sanctions. In 2024, India imported 22 million barrels from Venezuela, and Indian PSUs have invested about $1 billion in the country. 

Mr. Lynch, the Assistant U.S. Trade Representative for South and Central Asia, will be in India from March 25 to 29 for “regular” trade talks, the Ministry said, indicating the talks will focus on the BTA rather than the impending tariffs that will be implemented on a number of countries, including India, from April 2. The delegation is expected to meet Mr. Goyal, who visited Washington last month for talks, and other officials.

“This visit reflects the United States’ continued commitment to advancing a productive and balanced trade relationship with India,” the U.S. Embassy spokesperson said on Monday, adding that the U.S. looks forward to discussions on trade and investment in a “constructive, equitable, and forward-looking manner”.

The focus on “balanced” trade with the U.S. refers to a regularly repeated complaint by Mr. Trump and his officials about the trade deficits that the U.S. has with different countries.

India-U.S. trade, including goods and services, is touching $200 billion, with a trade deficit of about $45 billion in India’s favour, which Mr. Trump has asked India to address.

In an interview to the “All-In” podcast over the weekend, Commerce Secretary Howard Lutnik said he had raised the sharp divide in deficits and in import duties during Mr. Modi’s visit to Washington in February. He claimed India has an average “50%” tariff on imports, (India’s simple tariff average, according to WTO, is 17%), compared with the U.S.’s “4%”, and that India “protects its farmers”.

“I said to PM Modi, you have 1.4 billion people and you brag to us how amazing your economy is... Why won’t you buy a bushel of our corn?” adding, “So [U.S.] farmers can’t go to [India] but [Indian farmers] can come at us… Why is that okay?”.

Thus far India has allowed market access for a range of American nuts, duck meat, and apples, but analysts say that Indian negotiators must now be prepared to discuss the influx of a range of American agricultural products, including corn, soyabean, cotton, rice, pulses, and even dairy products.

(With inputs from Nistula Hebbar)