US President Trump claimed that India agreed to tariff reductions and took credit for it. India has not yet responded, although many countries have already reduced tariffs in the past.
Tariff War: US President Donald Trump recently claimed that India agreed to reduce US tariffs. He attributed this to the success of his policies, stating that his administration pressured India into this decision. However, India has not yet officially confirmed this claim. Indian officials maintain that trade talks between the two countries are ongoing, but no concrete decision has been reached regarding tariff reductions.
Did India actually decide to reduce tariffs?
According to sources, India has reduced tariffs in recent years under trade agreements with several countries, including Australia, the United Arab Emirates, Switzerland, and Norway. This process has been part of India's broader trade policy and is not the result of any specific pressure. Officials clarified that while India is engaged in trade talks with the US, this should not be linked to pressure from the Trump administration.
US Demands and India's Stance
Reports suggest that the US wants India to remove tariffs on almost all products, except perhaps agricultural products. If India accepts this demand, it would have to relax its trade protection measures without receiving significant concessions in return. India is approaching this issue cautiously and emphasizing a mutually beneficial agreement.
Current Scenario of India-US Trade Talks
India and the US have agreed to discuss the first phase of a multi-sectoral bilateral trade agreement (BTA) by the end of this year. This agreement aims to reach $500 billion in bilateral trade by 2030. Discussions in this direction took place during Prime Minister Narendra Modi's visit to Washington in February, where both countries agreed to reduce trade barriers and increase market access.
Indian Delegation's Visit to the US
In early March, an Indian delegation led by Union Commerce Minister Piyush Goyal visited Washington. Meetings were held with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. Discussions focused on ways to reduce tariff and non-tariff barriers, but no final decision was reached.
Impact of Tariffs to be Implemented by the US from April 2nd
The US has announced the implementation of reciprocal tariffs from April 2nd, which could affect some of India's major exports. Indian policymakers and businesses are therefore formulating strategies to mitigate the potential impact. Reports suggest that the Indian government is considering reducing tariffs on some key US products to maintain a trade balance.
