"India Prepares to Cut U.S. Import Tariffs On Trump's Threat Of 'Tariff Bomb'"

The Indian government is reportedly preparing to lower tariffs on some U.S. imports in connection with U.S. President-elect Donald Trump's threat to raise countervailing tariffs on its goods.

The Indian government plans to come up with such a plan and offer trade and investment negotiations to the U.S. government as soon as Trump takes office next month, Reuters reported, citing Indian government sources.

A government source said India's Commerce Department is currently working on a plan to cut tariffs on imports of some U.S. agricultural products, including pork, which is currently subject to 45% tariffs.

Another source said it would also lower tariffs on medical devices or high-end motorcycles imported from the United States, adding that those products are currently subject to 25-60% tariffs.

In addition, the Indian government is reportedly considering increasing imports of liquefied natural gas (LNG) and defense equipment from the United States.

Trade between India and the United States reached $118 billion (W171.1 trillion) in the 2023-2024 fiscal year, which ended in March, while India recorded a surplus of $32 billion (W46.4 trillion).

A spokesperson for India's commerce ministry declined a request for comment regarding the move by the country's government, Reuters said.

However, Commerce Department officials have recently said they can propose trade negotiations after Trump's inauguration and are currently working on a deal.

India is also reportedly working on measures, believing that Trump plans to impose tariffs of up to 60% on Chinese imports, that his country could seize the opportunity to become a production base to replace China.

Trump recently said he would raise countervailing tariffs on some imports from India and other countries, threatening to impose 100% tariffs on BRICS, a non-Western emerging economy consultative body such as India and China, if it challenges dollar hegemony.