As India prepares for upcoming trade negotiations with the United States, it is closely reviewing tariff structures and trade data discrepancies. These discussions play a crucial role in shaping future bilateral trade agreements and addressing concerns raised by both nations.

Key Aspects of the Review

Preparation for Trade Negotiations

India is scrutinizing recent import tariffs imposed by the US as it gears up for discussions on a proposed bilateral trade treaty.

Discrepancies in Trade Data

There are significant differences between the trade figures reported by India and the US. The US claims to import more from India than India records in its export data.

Trump’s Accusations

Former US President Donald Trump labeled India as a “tariff abuser,” citing a trade deficit of $100 billion. However, actual figures suggest the deficit was $45.6 billion in 2023.

Key Trade Figures

Trade Metric	US-Reported Data (2024)	India-Reported Data (2024)
US Goods Imports from India	$87.4 billion	$80.7 billion
US Goods Exports to India	$41.8 billion	$42.8 billion

Possible Reasons for Data Discrepancies

Differences in data capturing methods, including:

• US accounting for reexports
• Varying valuation methods

Tariff Adjustments

The US claims that India imposes high tariffs on certain goods. For example:

• 100% tariff on Harley-Davidson motorcycles (recently reduced)
• Adjustments in electronics and agricultural tariffs

Ongoing Collaboration

India’s departments of commerce and revenue are collaborating to align trade data collection methods between the two countries.

Historical Data Trends (2018-2024)

Year Range	Export Growth to US	US Recorded Import Growth from India
2018-2024	56.8%	61.1%

Conclusion

India’s tariff review aims to create a transparent trade environment and strengthen bilateral relations with the US. While trade data discrepancies persist, ongoing efforts to harmonize reporting standards and negotiate tariff structures will be key to resolving trade tensions and fostering economic cooperation.