A major reason for trade talks between the US and India breaking down are the import tariffs imposed by India on food products. But there’s a reason India wants to protect its farmers using import taxes.
Among major items, India has imposed one of the highest tariffs on food product imports from the US as well as the rest of the world. In 2022, India’s weighted average tariff for food imports from the US was 40.2%, and about 49% for the world combined.
This is because international agricultural prices are artificially suppressed by heavy govt subsidies and Indian farmers, who constitute 44% of the country’s workforce, can’t compete. While subsidies pull down international prices, Indian prices also go up because of labour-intensive agriculture and lower yields.