US ambassador highlights high tariffs in India, calls for collaborative reduction
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US Ambassador to India Eric Garcetti has highlighted the need for India and the United States to work together to lower tariffs, aiming to foster fair and equitable trade between the two nations.
Speaking at an event organized by the US-India Business Council (USIBC), Garcetti described India as the "highest tariff" major economy globally, underlining the need for dialogue and collaboration to address trade barriers.
Garcetti noted that as the India-US relationship deepens, the two nations have become more open to addressing sensitive issues. He remarked, “We need to lower tariffs together, not see them increase. By working collectively, we can enhance trade, making it fair and equal for both sides.” He also stressed the importance of creating training opportunities and leveraging talent across the Indo-Pacific region to benefit companies in both countries.
Despite existing trade challenges, Garcetti highlighted the significant growth in India-US bilateral trade, which has increased tenfold over the past two decades. The United States is currently India’s largest trading partner, with trade in goods and services expanding steadily.
In fiscal year 2023-24, India exported goods worth $77.51 billion to the US, while imports totaled $42.2 billion. Services trade between the two countries also witnessed a 30.3% increase, reaching an estimated $70.5 billion in 2024 compared to $54.1 billion in 2018.
Acknowledging criticisms of India’s high tariffs, Garcetti encouraged deeper trade negotiations. He stated, “India has reduced tariffs significantly over the years, but it still remains the highest tariff major economy. Both nations need to address barriers, including challenges in labor and land policies, to facilitate smoother trade.”
Former US President Donald Trump has also repeatedly criticized India for imposing high tariffs on American goods, including iconic products such as Harley-Davidson motorcycles and paper products. Garcetti’s remarks echo these concerns, urging open discussions to address such disparities.
The ambassador urged stakeholders to imagine the possibilities if the two countries engaged in more ambitious trade discussions. He emphasized that reducing barriers and fostering collaboration could unlock greater potential in the bilateral trade relationship.
With the US serving as the third-largest investor in India and key sectors like IT, manufacturing, and professional services thriving, the two nations are poised to deepen economic ties further. Between April 2000 and June 2024, India received $66.7 billion in Foreign Direct Investment (FDI) from the US.