US President Donald Trump criticised India’s high tariffs, describing them as a significant obstacle to American exports. He claimed that selling goods in India is “nearly impossible” due to steep import duties. His comments come as the US plans to impose reciprocal tariffs on countries that levy heavy duties on American products.
Despite his criticism, Trump revealed that India has agreed to reduce its tariffs significantly. He credited this shift to his administration’s efforts in exposing what he describes as an unfair trade practice. “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 declared from the White House.
Reciprocal tariffs
As part of a broader effort to rectify trade imbalances, the US will introduce reciprocal tariffs starting April 2. The move marks a significant shift in trade policy, as Trump emphasised that the US would no longer allow other nations to take advantage of its economy. He singled out Canada, the European Union, and India for imposing high tariffs on American goods.
Trump particularly criticised Canada for its 250 per cent tariff on American dairy products, calling it “unfair.” He vowed to impose equivalent tariffs unless Canada reduces its import duties. He also accused the European Union of deliberately creating policies that disadvantage US businesses, asserting, “The EU was formulated in order to take advantage of the United States.”
India-US trade
The impact of these tariffs will be far-reaching, prompting many nations to reassess their trade policies. The US Commerce Secretary, Howard Lutnick, highlighted the importance of opening India’s agricultural trade market. Speaking at the India Today Conclave, Lutnick suggested that India could adopt smarter strategies such as quotas or limits to balance its trade relationship with the US.
The US and India have also been working toward a broad-based bilateral trade agreement, expected by the fall of 2025. The agreement aims to double bilateral trade to $500 billion by 2030 under the “Mission 500” initiative. Indian Commerce Minister Piyush Goyal recently visited the US to advance these negotiations, reinforcing the commitment of both nations to expanding trade and investment.
