Just a day before he is set to announce reciprocal tariffs, U.S. President Donald Trump made a surprising claim during a press briefing at the White House. He stated that he "heard" India would be reducing tariffs on American imports significantly.

When asked about the reciprocal tariffs he plans to unveil on April 2 and whether this could strain America's relations with its allies, Trump responded, "I think a lot of them will drop their tariffs because they were being done in an unfair way. They’ve done this for years. If you look at the European Union, they already dropped their tariffs on cars down to 2.5% just a couple of days ago. And I think I heard just a short while ago that India will be dropping its tariffs very substantially."

Trump did not provide any specifics or names to back his assertion, and there has been no official confirmation from India regarding a substantial reduction in tariffs, which have been in place for decades.

US-India Trade Tensions

In the past, President Trump has frequently criticized India's tariff policies, calling the country the "tariff king" and one of the biggest "abusers of tariffs." On several occasions, Trump has highlighted India's high tariffs on U.S. imports, particularly agricultural products, which have been a point of contention in the ongoing trade discussions between the two nations.

Earlier in the day, White House Press Secretary Karoline Leavitt discussed what she described as "unfair" trade practices, focusing on India's 100% tariffs on U.S. agricultural imports. She also pointed out similar high tariffs imposed by other nations, including the European Union (50% on American dairy products), Japan (700% on rice), and Canada (300% on butter and cheese). These practices, she argued, create trade imbalances and hurt U.S. exports.

India's Steps Toward Trade Reforms

Despite Trump’s criticisms, India has taken steps to address some of these concerns. The country has already reduced tariffs on products like Harley Davidson motorcycles and American bourbon whiskey. India has reportedly offered to cut import duties on select agricultural products, with a Reuters report suggesting that reductions could apply to more than $23 billion worth of U.S. imports. However, this offer is contingent on the U.S. exempting India from any reciprocal tariffs.

In its 2025 Union Budget, India announced a reduction in customs duties on American solar cells, machinery, and luxury cars. Additionally, starting April 1, 2025, India will remove the 6% tax on digital advertisements, benefiting U.S. tech giants like Meta, Google, and Amazon.

Looking Ahead

India and the U.S. are working to expedite negotiations on a major trade deal, aiming to finalize it before the autumn deadline. As both nations continue to navigate their trade relationship, it remains to be seen how Trump's announcement and India's potential tariff reductions will shape future ties between the two countries.