US Seeks Tariff Cuts, Regulatory Reforms in Trade Deal with India

The US is expected to push for significant changes in India's policies, including tariff reductions, regulatory overhauls, and easing restrictions on US retail giants like Amazon and Walmart. The US also demands scaling back India's minimum price support programmes for crops, removing restrictions on genetically modified imports, and lowering farm tariffs. India may resist these demands due to concerns about protecting small domestic retailers and preserving regulatory autonomy.

The United States is reportedly nearing a significant trade agreement with India, with Commerce Secretary Howard Lutnick indicating that a deal is "done" but awaiting approval from Indian leadership [1]. The potential agreement comes amidst the U.S. administration's efforts to restructure global trade on reciprocal terms, with India emerging as a key partner.

The U.S. is pushing for substantial changes in India's policies, including tariff reductions, regulatory overhauls, and easing restrictions on U.S. retail giants like Amazon and Walmart. Additionally, the U.S. demands scaling back India's minimum price support programmes for crops, removing restrictions on genetically modified imports, and lowering farm tariffs [2]. India, however, may resist these demands due to concerns about protecting small domestic retailers and preserving regulatory autonomy.

The market reacted positively to the trade deal news, with major indices rising to session highs. This optimism is driven by hopes of easing trade tensions and boosting business confidence, which has been shaken by recent tariff hikes [1].

The trade agreement is also expected to address India's restrictive e-commerce policies, a key point of contention in the negotiations. The U.S. has consistently pushed for greater market access and less regulatory burden for American tech and retail firms operating in India [2]. This comes as the Enforcement Directorate (ED) in India is reportedly seeking detailed sales and contract data from smartphone giants Apple and Xiaomi as part of its ongoing investigation into alleged violations of foreign investment laws by Amazon and Flipkart [2].

The potential trade deal with India is seen as a major milestone for the U.S. administration's attempt to restructure global trade. However, the broader impact on market sentiment and business confidence remains to be seen as the details of the agreement are finalized [1].

References:
[1] https://www.sharecafe.com.au/2025/04/30/us-signals-first-major-post-tariff-trade-deal-likely-with-india/
[2] https://udaipurkiran.in/apple-xiaomi-queried-in-ed-probe-as-amazon-flipkart-face-renewed-scrutiny-over-e-commerce-practices-in-india/