India is considering reducing or eliminating import duties on American agricultural products such as walnuts, almonds, apples, and cranberries.
Strengthening Indo-U.S. Trade Ties
India is considering reducing or eliminating import duties on key American agricultural products, including walnuts, almonds, apples, and cranberries. This move is part of ongoing efforts to strengthen trade relations with the United States and address potential trade disputes ahead of the U.S.’s planned reciprocal tariffs set to take effect on April 2.
Current Import Duty Structure
At present, India imposes significant import duties on these commodities. Almonds face tariffs ranging from 42% to 120%, apples are subject to a 50% duty, and walnuts incur duties between 100% and 120%. The Indian government is now evaluating possible concessions, which could involve lowering tariffs on walnuts and almonds while completely removing duties on cranberries.
Bilateral Trade Goals and Economic Impact
The initiative is a step toward finalizing a broader bilateral trade agreement between the two nations, with a long-term objective of achieving $500 billion in trade by 2030. India has been in consultation with stakeholders to assess the economic impact of these tariff reductions and identify sectors where mutual benefits can be achieved.
In the fiscal period from April to November FY25, India’s imports from the U.S. included $614.5 million worth of almonds, $22.48 million worth of apples, and $6.68 million worth of cranberries. The proposed duty cuts are expected to increase trade volumes, benefiting both Indian consumers and American exporters.
Strategic Response to U.S. Tariffs
India’s consideration of duty reductions comes at a crucial time, as the U.S. is set to impose new reciprocal tariffs. By proactively addressing tariff barriers, India aims to prevent potential trade conflicts and foster a more collaborative economic relationship with the United States.
