USTR Report Builds The Case For Reciprocal Tariffs Against India

A new U.S. trade report has flagged multiple barriers India imposes on American exports, investment, and digital trade. With President Donald Trump’s April 2 deadline for reciprocal tariffs looming, the stage is set for a potential escalation in trade tensions. The 2025 National Trade Estimate Report highlights India’s high tariffs, restrictive import policies, and unpredictable regulatory changes as key concerns. According to the report, India’s average Most-Favoured-Nation tariff rate was 17% in 2023, with agricultural goods facing steep levies — ranging from 50% on apples to a staggering 150% on alcoholic beverages. Beyond tariffs, the U.S. Trade Representative points to non-tariff barriers such as restrictive import licensing, complex customs procedures, and strict sanitary standards on agricultural imports. Digital trade and intellectual property issues also remain points of contention. Will the U.S. impose new tariffs on India? What does this mean for bilateral trade relations?