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The interests of Indian farmers must not be hurt by trade deals

April 18, 2025

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Mint New Delhi

Pact negotiators should bear in mind that a large part of India's population depends on farming

- HIMANSHU

We are living in an uncertain world after Donald Trump took over the US presidency. Within a short span of time, the world of international trade has turned topsy-turvy, with daily announcements of tariffs or threats. After Trump's 'reciprocal' tariff announcement on 2 April, country-specific tariffs have been paused till July for all countries except China. The stated objective of unilateral tariffs is to re-industrialize the US, whose industrial base has been hollowed out after decades of globalization and free trade.

While the US grumbles about manufacturing in countries like China, it has a particular problem with India's agricultural trade tariffs. This is clear from the annual US Trade Estimate Report for 2025 released on 31 March, followed by statements from the US commerce secretary Howard Lutnick and White House press secretary Karoline Leavitt who both criticized India for blocking agricultural trade. India's average weighted tariff on US farm produce is 37%, according to the Global Trade Research Initiative, an Indian think tank, as against the US's 5% on Indian agricultural produce. This gap has been picked upon by the US government.

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