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US Senators’ Letter on Pulse Tariffs Adds New Strain to India–US Trade Negotiations

Written by: Akshay ShivalkarUpdated on: 19 Jan 2026, 6:10 pm IST
Two US senators’ request to remove India’s pulse tariffs adds pressure to bilateral trade talks and highlights tensions around agricultural policy.
US Senators’ Letter on Pulse Tariffs Adds New Strain to India–US Trade Negotiations
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India and the United States are nearing the conclusion of a long‑pending bilateral trade agreement, but an older issue has resurfaced unexpectedly. A new letter by two influential US lawmakers has urged President Donald Trump to push India to lift tariffs on American pulse exports.

This development introduces a fresh complication at a time when both sides have been negotiating for nearly a year. The matter touches directly upon India’s agricultural sensitivities and its broader goal of achieving greater self‑reliance in pulse production.

US Lawmakers Raise Concerns Over India’s Pulse Tariffs

Two Republican senators, Steve Daines of Montana and Kevin Cramer of North Dakota, raised concerns over India’s tariff regime on pulse imports. They represent the two largest pulse‑producing states in the US, and their January 16 letter described India’s tariff structure as unfair to American farmers.

According to the letter, India accounts for about 27% of global pulse consumption, making it a critical export market for American producers. The senators argued that the tariffs restrict US access to this market, thereby affecting the competitiveness of American agricultural exports.

Focus On The 30% Tariff on Yellow Peas

The primary issue flagged by the senators is India’s 30% tariff on yellow peas announced in October last year, which came into effect on November 1, 2025. They claimed the tariff places US exporters at a significant competitive disadvantage relative to other suppliers.

The communication noted that American crops meet global quality standards but struggle to enter India at commercially viable terms. The lawmakers urged the US administration to make pulse tariffs a key priority in any forthcoming trade arrangement with India.

India’s Policy Framework and Domestic Considerations

India’s tariff decisions on pulses are shaped by domestic agricultural and price‑stability requirements rather than country‑specific targeting. The country had allowed duty‑free imports of yellow peas until March 31, 2026, demonstrating flexibility in earlier phases of supply management.

Indian farmers had expressed concerns over declining domestic prices following a surge in cheaper imports, prompting calls for policy action. The decision to impose tariffs was therefore intended to stabilise domestic markets and protect farm incomes rather than single out any exporting country.

Uniform Application of Tariffs Across Exporting Countries

India’s tariff on yellow peas applies uniformly to all pulse‑exporting nations, including Canada, which is one of India’s largest suppliers. This uniform structure reflects India’s approach of safeguarding domestic production while maintaining fairness across trading partners.

The measure does not discriminate between exporters but addresses broad market‑wide pressures arising from import volumes. From India’s standpoint, the tariff serves as a safeguard mechanism designed to ensure price stability and support local agricultural sustainability.

Read More: India CPI Inflation Eases To 1.33% In December on Food Price Relief.

Conclusion

The senators’ letter adds a new dimension to India–US trade discussions at a crucial moment. While the concerns raised focus on market access for American pulse producers, India’s tariff framework is rooted in domestic agricultural priorities and broader market‑stability objectives.

The issue may complicate negotiations, but both sides continue to engage on long‑standing trade topics. The development underscores how agricultural pricing measures can influence wider economic and diplomatic discussions between major trading partners.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 19, 2026, 12:40 PM IST

Akshay Shivalkar

Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.

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