March 27, 2025: India is likely to receive a reprieve from the proposed US tariffs, according to Govt sources. This means India won’t be grouped with countries like China, Mexico and Canada which are facing tariffs.

Trade discussions between India and the US are progressing smoothly, with no signs of deadlock ahead of the April 2 deadline for US reciprocal tariffs. Officials are exploring a “tailored, sector-wise approach”, which would lead to a phase-wise implementation of new trade measures.

While discussions remain positive, US officials are pressing for more concessions from India. The US has been reviewing its tariff strategy amid global trade realignments, and India’s potential exclusion signals recognition of its distinct trade relationship with the US.

This development could bring relief to Indian exporters concerned about steep tariff hikes. India is reportedly open to lowering tariffs on 55% of US imports, with some tariffs possibly being slashed significantly or completely removed.