High Tariffs and Defense Deals: Key to U.S.-India Trade Breakthrough

U.S. Commerce Secretary Howard Lutnick urges India to lower its high import tariffs and diversify defense purchases from Russia to America, as a precursor to a significant bilateral trade deal. The U.S. seeks to reduce India's tariffs and increase military sales, aiming for a robust trade relationship by 2030.

U.S. Commerce Secretary Howard Lutnick emphasized the need for India to reduce its high import tariffs and transition defense purchases from Russia to the United States. In a recent interview, Lutnick noted that such steps are essential for forging a substantial trade deal between the two nations.

Speaking ahead of impending reciprocal U.S. tariffs, Lutnick highlighted that India's tariffs are among the highest worldwide, urging a reassessment of the countries' special relationship. He proposed a structured trade agreement with quotas for sensitive sectors like agriculture, while advocating for opening the sector to enhance bilateral trade.

Lutnick's statements align with President Donald Trump's plans to expand U.S. military sales to India, including advanced fighter jets, as part of a strategic shift in defense alliances. The U.S. aims for bilateral trade worth $500 billion by 2030, pushing for reduced tariffs to facilitate broader economic cooperation.

(With inputs from agencies.)