India-US Trade Talks Advance As Washington Praises India’s ‘Best Offers Ever’
Currently, the US already levies 50% tariffs on Indian goods, the highest rate applied to any country.
India is pushing ahead with trade negotiations with the United States, with US Trade Representative Jamieson Greer telling lawmakers that India has made “the best we’ve ever received as a country” in ongoing discussions.
Talks are centered on expanding access for American farmers to Indian markets, particularly for crops such as grain sorghum and soy.
On Tuesday, President Donald Trump threatened to impose new tariffs on Indian rice, citing concerns that India was dumping rice in the US market. Currently, the US already levies 50% tariffs on Indian goods, the highest rate applied to any country.
Greer Praises India’s Market Access Proposals
Speaking at a Senate Appropriations subcommittee hearing, Greer said a US trade team is in New Delhi discussing agricultural issues. While India remains cautious on some crops, Greer noted that recent proposals reflect a rare willingness to open up. “They’ve been quite forward-leaning,” he told senators.
Greer added that India could become “a viable alternative market” for US commodities at a time when American farmers face high inventories and fluctuating demand from China. “We have to find a way to manage that trade,” he said.
Beyond Agriculture: Aviation And Energy
Greer indicated that discussions extend beyond crops to tariffs and market access in other sectors. On zero-tariff commitments for civil aviation parts under the 1979 Aircraft Agreement, he said talks are “fairly far advanced” and suggested the US could offer similar treatment if India agrees to reciprocal access.
Committee Chair Jerry Moran highlighted India as a potential buyer of ethanol made from US corn and soy. While Greer did not provide specifics, he noted that other countries, including the European Union, have committed to purchases worth $750 billion over several years for US ethanol and energy products.
Trump’s Tariff Threat Adds Uncertainty
Trump’s comments have injected uncertainty into negotiations already facing delays. Speaking to the Indian Express, Prem Garg, President of the Indian Rice Exporters Federation (IREF), said India’s rice exports comply with WTO rules and bilateral guidelines, adding that shipments to the US are limited to basmati rice and its varieties. Even with the 50% tariff, Indian farmers remain unaffected due to the niche nature of these exports.
Meanwhile, the US Supreme Court is reviewing whether Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) in imposing broad tariffs.
