India is among several nations planning to slash tariffs, US trade representative Jamieson Greer has said, adding that around 50 countries have approached him to discuss President Donald Trump’s new plan, which has begun to reap rewards.

Greer told the Senate Finance Committee that the United States’ average tariff on agricultural products is 5%, however, India’s average tariff is 39%.

US Trade Representative On India

“Our average tariff on agricultural goods is 5%, but India’s average tariff is 39%. You understand the trend here. Our trade deficit, driven by these non-reciprocal conditions, is a manifestation of the loss of the nation’s ability to manufacture, to grow, and to build. The President recognises the urgency of the moment,” he told the Senate.

Naming India and Israel among those mulling a reduction in tariffs, he said that countries have shown willingness to reduce both tariff and non-tariff hurdles as a result of Trump’s agenda of “reciprocity” in trade with allies.

“Nearly 50 countries have approached me personally to discuss the President’s new policy and explore how to achieve reciprocity. They have also spoken with many members of the administration. Several of these, such as Argentina, Vietnam, India, and Israel, have suggested that they will reduce their tariffs and non-tariff barriers in line with the President’s policy,” Greer said.

He also attributed the significant spike in the US trade deficit and decline of the country’s manufacturing sector to “one-sided tariffs, trade barriers by foreign partners”.

Trump’s big changes to trade rules — like setting a basic global baseline tariff on imports and adding higher taxes on steel, aluminum, cars, and parts not made in the US — have led nearly 50 countries to start talks, he added.

“Several of these countries have suggested that they will reduce their tariffs, in line with the President’s policy,” the US government official said.

India-US Trade Talks

As per the agreement between India and the US during Prime Minister Narendra Modi’s visit to Washington DC in February, the two countries will negotiate a mutually beneficial Bilateral Trade Agreement by this Fall.

India and the US have begun trade deal talks. According to a government official, New Delhi is not planning to retaliate against Trump’s 26% tariffs that went live on April 2, when he also imposed sweeping tariffs on several nations, shaking the markets across the globe.

The official, who did not want to be named, said that the Indian government has found a clause in Trump’s tariff order that offers a possible reprieve for trading partners who “take significant steps to remedy non-reciprocal trade arrangements.

This clause says that countries can be excused from the tariffs or get some relief if they work to fix unfair trade deals.