On Friday, U.S. President Donald Trump claimed that India has finally agreed to cut tariffs on American imports. He attributed this decision to his administration's relentless efforts to expose unfair trade practices. Trump emphasized that India's decision came because, at last, someone is unveiling the truth.
This statement followed the introduction of reciprocal tariffs on India announced by the U.S. a few days ago, effective from April 2. Trump stated that the U.S. took this measure in response to trade policies harmful to American businesses.
'India Charges Very High Tariffs'
Trump highlighted that India imposes excessively high tariffs. He noted that selling anything in India seems impossible. However, he acknowledged that India has agreed to reduce tariffs because someone is now holding them accountable.
Earlier reports indicated that the Indian government considered lowering tariffs on vital American imports. Meanwhile, companies in several sectors are negotiating with American partners to ensure continuity in trade.
Companies Strategizing on Tariffs
According to a report by The Economic Times, numerous Indian companies dealing in auto parts, consumer electronics, jewelry, and apparel are strategizing on ways to mitigate risks. These discussions began when Trump reiterated the issue of reciprocal tariffs on Indian imports during a joint session of the U.S. Congress.
Trump's Address to the Joint Session of Congress
Trump argued that India imposes tariffs exceeding 100% on U.S. products. He pointed out that the average Chinese tariff is double that of the U.S., and South Korea's average tariff is four times higher. This situation comes from both allies and adversaries. It's an unfair setup for America and has never been. On April 2, reciprocal tariffs will be adopted; for any tax imposed on us, we will reciprocate with the same. Trump humorously mentioned that April 1 was avoided for implementation due to April Fools' Day traditions.
He further explained that if trading partners apply non-monetary tariffs to keep us out of their markets, we will reciprocate. 'We will amass trillions of dollars and create unprecedented jobs. Every country has been exploiting us for decades, and we won't allow it anymore,' he declared.
Insights from the India Today Conclave
Previously, U.S. Commerce Secretary Howard Lutnick spoke at the India Today Conclave 2025, discussing Indo-American relations, trade, and tariffs. He reiterated Trump’s view that India is among the few nations imposing the highest tariffs on American goods. Lutnick stressed the need for significant tariff reductions by India to facilitate equal trade opportunities and market access for America. Lutnick oversees the India-U.S. trade deal under the Trump administration.
He stated that minor adjustments, such as reducing tariffs on items like American whiskey and Harley-Davidson bikes, won't suffice. A broad and substantial reduction is necessary. Addressing concerns about potential political backlash for the Modi government if tariffs on agricultural products were reduced, Lutnick said, 'India’s market must open up for agricultural goods. Smart business strategies are essential. It’s time for India to lower tariffs and allow U.S. market entry. Significant actions are required rather than incremental reductions.'
He concluded, 'Historically, the U.S. imposed no tariffs, whereas India consistently levied heavy tariffs on American products. America is now altering its policy. Under Trump, reciprocal tariffs are being enforced, ensuring that all nations will be treated as they treat us.'
