Agricultural protectionism raises India’s import tariff.

• India’s average tariff on imports in 2023 was 17%, five times higher than the U.S.’s 3.3%.

• India’s tariffs are highest among BRICS countries, followed by Brazil (11%), South Africa, and China (more than 7%).

• Despite the difference, the number of products subject to tariffs remains comparable in both countries.

• India’s higher average tariffs are mainly due to high tariffs on agricultural products to protect domestic producers.

• The duty on agricultural goods has always been more than twice the duty on non-agricultural products, exceeding 38% in all years except in 2020.

• India’s high agricultural tariffs are imposed to protect food security and livelihoods, as the sector remains inefficient by global standards.

• Tariffs on agricultural, dairy products, beverages, tobacco, transport equipment, cotton, textiles, electrical machinery, leather/footwear, and some manufactured goods increased between 2018 and 2023.

• U.S. President Donald Trump’s suggestion of “reciprocal tariffs” on countries that have treated the U.S. unfairly has caused unease in India.

• India has recently reduced tariffs on bourbon whiskey from 150% to 100%.

• India is increasingly exporting more to the U.S., widening its trade surplus with the U.S.

• The U.S. may pressure India to reduce its agricultural tariffs as part of the bilateral trade agreement they are negotiating.