World
India
US President Donald Trump announced on Friday that India has agreed to reduce tariffs on American imports. The announcement comes days after Trump declared that the US would impose reciprocal tariffs on Indian goods starting April 2, citing India’s “unfair trade policies.” The decision follows mounting pressure from the US administration, which has been vocal about its dissatisfaction with India’s tariff structure.
“India charges us massive tariffs. Massive. You can’t even sell anything in India. They have agreed, by the way; they want to cut their tariffs way down now because somebody is finally exposing them for what they have done,” ANI quoted Trump as saying
Indian Companies Prepare for Impact of Tariffs
“India charges us tariffs higher than 100 per cent, China’s average tariff on our products is twice what we charge them, and South Korea’s average tariff is four times higher. This is happening by friends and foes. The system is not fair to the US; it never was. On April 2, reciprocal tariffs kick in. Whatever they tax us, we will tax them,” Trump said during his joint address to the US Congress. The speech marked his first address to Congress since taking office in January. Trump further quipped that he avoided making the announcement on April 1, to steer clear of April Fool’s Day connotations.
The decision triggered widespread discussions among Indian companies, with businesses across sectors such as auto parts, consumer electronics, jewellery, and apparel strategising on mitigating potential risks. According to a report in The Economic Times, many Indian firms are actively engaging with American partners to ensure business continuity.
US Demands Near-Total Tariffs Removal
Reports suggest that the US recently asked India to remove tariffs on nearly all goods, excluding agricultural products. If accepted, the demand would require India to abandon its long-standing trade protections without receiving any reciprocal concessions. The proposal has added further complexity to the ongoing trade negotiations between the two countries.
Earlier on Friday, US Secretary of Commerce Howard Lutnick addressed the issue at the India Today Conclave 2025. Lutnick, who is leading the US-India trade discussions, highlighted that India maintains some of the highest tariffs globally.
“I would like to point out that India has some of the highest tariffs in the world, which will necessitate a reassessment of the special relationship between India and the US,” Lutnick said.
Global Trade Tensions Escalate
He also proposed a macro-level approach to expedite the tariff negotiations. “If the approach were to focus on individual products — motorcycles, bourbon, and so on, it would take forever. However, given the sheer size of both India and the United States, the right strategy is to take a macro approach. That’s why we believe this can be accomplished,” Lutnick explained.
Trump’s reciprocal tariff pledge follows the implementation of new 25 per cent tariffs on Canadian and Mexican imports, along with a doubling of duties on Chinese goods to 20 per cent. In response, the three largest trading partners of the US have announced retaliatory measures, escalating global trade tensions.
