Archive · 4 Sep 2025
US Tariffs: India Should Negotiate Based on US Fiscal Needs
Imagine the US is charging extra taxes (tariffs) on goods from India.
This makes it harder for India to sell things in the US.
The author suggests India should talk to the US about this.
The US needs money, and these tariffs are meant to get more.
But high tariffs can backfire by stopping trade completely.
So, India should try to negotiate for lower tariffs that would still help the US make money.
This is because the US can't easily raise taxes because of political problems.
This makes the author believe the best approach to solving this issue is negotiations.
US tariffs impose a 50% levy on some Indian exports.
India faces a 25-30% relative tariff disadvantage in the US market.
The US terminated India's GSP eligibility in June 2019.
The US base tariff has increased to 10% on all imports.
Author suggests India negotiate with the US, leveraging its fiscal needs.
- Who
- United States and India
- What
- US tariffs affect Indian exports; Author suggests negotiating based on US fiscal needs.
- When
- Since April 2025, with historical context.
- Where
- United States and India, with analysis of historical US data.
- Why
- US fiscal needs are driving tariffs; India should negotiate to achieve optimal revenue maximizing tariffs
- US Tariffs on India
- 50% on some exports
- Tariff Disadvantage
- Roughly 25-30% relative disadvantage
- GSP Scheme
- US terminated India's eligibility in June 2019, closed in 2020
- US Base Tariff
- Upped to 10% on all imports
Sources
Harley Davidson: Bike’s Model-Wise Price Breakdown Amid Trump’s Recycled Tariff Argument
Handicraft, pharma, textile industries push for uniform GST amid US tariff row
Trump says India once 'killed' US with tariffs, now offers none
