Trump's tariffs may harm India's agricultural exports

U.S. President Donald Trump has proposed new tariffs to address the growing U.S. trade deficit, which reached $918.4 billion in 2024. India is a significant contributor to this deficit, accounting for $45.7 billion. India imposes much higher tariffs on agriculture than the U.S., with averages of 39% and 65% compared to the U.S. rates of 5% and 4%. If reciprocal tariffs are enacted, India's agricultural exports to the U.S. could decline, impacting trade relations. To counter these potential challenges, the paper suggests India should reduce tariffs on certain products, invest in agricultural research, and strengthen value chains. These steps aim to enhance competitiveness and sustain agricultural growth amid changing trade dynamics.