US President Donald Trump on Friday claimed that India has agreed to reduce tariffs on American imports, days after his administration announced reciprocal tariffs on Indian goods from April 2, citing "unfair trade policies."
"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," Trump said, as reported by ANI.
Earlier in the day, the Ministry of External Affairs addressed concerns over the tariff dispute but did not confirm any decision on reducing duties.
Trump’s remarks follow reports that the Indian government is considering tariff reductions on key US imports, while companies across various sectors are in talks with American partners to ensure business continuity.
In January, Trump had criticized global tariff structures, stating, "India charges us tariffs higher than 100 percent, 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 alike. The system is not fair to the US; it never was."
He also noted that he deliberately chose April 2 for implementing the new tariffs, avoiding April 1 as it is April Fool's Day.
On Thursday, The Economic Times reported that Indian companies in sectors such as consumer electronics, jewellery, and apparel are reaching out to their key export partners in the US to ensure business continuity and explore alternative strategies amid the looming threat of reciprocal tariffs imposed by Washington.
The deliberations reportedly began after US President Donald Trump reiterated his plan to impose reciprocal tariffs on Indian imports during his address to the US Congress.
Trump had further asserted that if trading partners "use non-monetary tariffs to keep US out of their market, then the US will use non-monetary barriers to keep them out of our market."
"We will take in trillions and trillions of dollars and create jobs like we have never seen before," he said, adding, "We've been ripped off for decades by every country on Earth, and we will not let that happen any longer."
Days ago, reports suggested that the US had asked India to remove tariffs on nearly all goods except agricultural products. If accepted, the demand would have required India to give up its trade protections while receiving no concessions in return.
Trump's pledge of reciprocal tariffs came after his administration imposed a new 25 percent tariff on Canadian and Mexican imports, along with doubling duties on Chinese goods to 20 percent. In response, the US’s three largest trading partners also announced retaliatory measures against Washington.
