Will Dal Derail Deal? New Irritant Looms Over India-US Trade Talks
A new challenge has emerged in the ongoing trade negotiations between the United States and India: tariffs on pulses, also known as dal in India. While both nations aim to finalize a bilateral trade agreement, this agricultural dispute threatens to complicate discussions.
The heart of the issue lies in India's recent imposition of a 30% import duty on American pulses, particularly yellow peas. This decision, which took effect on November 1, 2025, has raised concerns among US lawmakers, who argue that it unfairly disadvantages American farmers. Senators Kevin Cramer of North Dakota and Steve Daines of Montana, representing states that are leading producers of pulse crops, have urged President Donald Trump to intervene and seek the removal of this tariff. In a letter dated January 16, 2026, they emphasized the need for greater market access for American pulses and lentils before any trade deal with India is finalized.
India, the world's largest consumer of pulses, relies on these crops as a staple food. The Indian government's decision to impose tariffs is rooted in its agricultural policies and its pursuit of self-reliance in pulse production, aiming to protect domestic farmers. According to Statista.com, India's production of pulses was estimated to be over 24 million metric tons in the financial year 2024.
The move, implemented without significant public announcement, is viewed by some geopolitical observers as a silent retaliation to earlier tariff actions by the U.S. Last year, the U.S. imposed 50% tariffs on certain Indian goods, a measure linked to India's purchases of Russian oil. This escalation in trade tensions strained the relationship between Delhi and Washington.
Despite these challenges, both countries have expressed optimism about reaching an agreement. Trade talks between India and the U.S. have remained active, with engagement at multiple levels. U.S. Ambassador to India Sergio Gor has affirmed that both sides are actively working to finalize a trade deal. India is also set to formally join the U.S.-led Silicon Peace Initiative in February, a coalition focused on securing critical technology and mineral supply chains.
Whether this "dal diplomacy" will impede progress remains to be seen. The U.S. has long sought to reduce India's high agricultural tariffs, which average around 39%, compared to the U.S.'s 5%. Removing trade barriers would benefit both American farmers and Indian consumers. However, India is an agricultural economy and is under no obligation to import what it does not need, or to destabilize domestic farmers to accommodate foreign political pressures. As negotiations continue, both sides will need to address these concerns to reach a mutually beneficial agreement.
