India to significantly cut tariffs before April 2 deadline, claims Trump

US President Donald Trump said that India plans to significantly lower its tariffs before the April 2 deadline for reciprocal tariffs. "India is going to be dropping its tariffs substantially," Trump said.

During a press briefing in the Oval Office, Trump said, "I think a lot of them (countries) will drop their tariffs because, you know, they have been unfairly tariffing the United States for years. And if you look at the European Union on cars, they already dropped their tariff down to 2.5 per cent..."

He further added, "I think I heard that India, just a little while ago, is going to be dropping its tariffs very substantially. And I said why didn't somebody do this a long time ago. A lot of countries are going to be dropping their tariffs."

India-US tariff row

The escalating trade tensions between India and the United States are set to intensify with the implementation of reciprocal tariffs on April 2, a date President Trump has dubbed "Liberation Day".

The White House has highlighted India's 100 per cent tariff on US agricultural products as a significant barrier, making it nearly impossible for American exports to compete in the Indian market. White House Press Secretary Karoline Leavitt emphasised that these tariffs have long disadvantaged US exporters, saying, "These countries have been ripping off our nation for far too long".

Starting April 2, the US plans to impose reciprocal tariffs on various imports from countries that maintain high import duties on American goods. This includes not only agricultural products but potentially extends to sectors such as pharmaceuticals and automobiles, with tariffs possibly reaching 25 per cent or more. Trump's administration has indicated that these measures could generate substantial revenue while aiming to protect American industries from foreign competition.

As both nations prepare for these new tariffs, ongoing negotiations for a Bilateral Trade Agreement (BTA) are also in progress, with hopes to finalise discussions by fall 2025. However, no immediate relief from tariffs has been indicated.