US President Donald Trump has stated that India has agreed to reduce its tariffs “way down”, following high-level trade discussions between Union Commerce Minister Piyush Goyal and his US counterpart Howard Lutnick. The announcement aligns with Trump’s long-standing claim that India imposes excessive tariffs that hinder American businesses.
In remarks from the Oval Office on Friday, President Trump emphasized the trade imbalance, saying, “Our country, from an economic standpoint and financial standpoint and a trade standpoint, has been absolutely ripped off by almost every country in the world. Canada, Mexico, and then you just go right down the line. India charges us massive tariffs, massive, you can’t even sell anything into India. It’s almost, it’s almost restrictive. It is restrictive. We do very little business inside.”
Trump further stated, “They’ve agreed, by the way, they want to cut their tariffs way down now because somebody’s finally exposing them for what they’ve done. And the same thing with China, same thing with a lot of other countries, and the EU has been a terrible abuser of this country.”
India’s Response and Trade Developments
In response to Trump’s comments, sources noted that India has already significantly reduced its average applied tariffs for key developed countries, including Australia, UAE, Switzerland, and Norway, through recent bilateral trade agreements. Negotiations with the European Union and the United Kingdom are also in progress, highlighting India’s commitment to fostering trade relations globally.
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As part of ongoing trade discussions, India and the US have agreed to negotiate the first phase of a multi-sector Bilateral Trade Agreement (BTA) by fall 2025. This decision follows talks between Prime Minister Narendra Modi and President Trump, during which they designated senior representatives to advance negotiations aimed at increasing market access, reducing tariff and non-tariff barriers, and deepening supply chain integration.
High-Level Meetings in Washington
To further these negotiations, an Indian delegation led by Commerce Minister Piyush Goyal visited Washington, DC, from March 3-6. During the visit, Goyal met with the US Commerce Secretary, the US Trade Representative, and other key officials to discuss trade issues, including tariffs and regulatory frameworks.
Sources confirmed that discussions on tariff adjustments and other trade aspects are part of a broader negotiation process, initiated during PM Modi’s visit to Washington. “Obviously, there are specifics which have been mentioned on various issues as part of the negotiation,” sources said, adding, “It is also natural that both countries have their interests and sensitivities. These are legitimate matters for discussion.”
Looking Ahead: India-US Trade Relations
The current trade negotiations between India and the US follow earlier discussions during Trump’s first administration, which aimed at a limited trade deal but did not reach a final agreement. As the newly launched discussions progress, both nations are expected to address mutual concerns and explore avenues for enhancing trade partnerships.
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“Since the discussions have just begun, it would be premature to talk about its details,” sources said. “There is also a context for each dimension that would reflect the interests of both sides.”
With trade talks advancing, experts predict a more balanced and cooperative economic relationship between India and the US, strengthening ties between the two largest democracies in the world.
