US President Donald Trump announced on Friday that India had agreed to reduce tariffs on American imports, just days after he imposed reciprocal tariffs on Indian goods, citing unfair trade policies. The new US tariffs, set to take effect on April 2, are part of Trump’s broader strategy to counter what he calls imbalanced trade practices.
The decision follows reports that India was considering tariff reductions on key imports from the US to avoid trade disruptions. Indian companies in auto parts, electronics, jewellery, and apparel have been exploring strategies to mitigate risks and maintain business ties with American partners.
Trump’s justification for reciprocal tariffs
Addressing Congress, Trump defended his move, stating that India, China, and South Korea impose higher tariffs on US goods, which he deemed unfair.
"India charges us tariffs higher than 100%. China’s average tariff on our products is twice what we charge them. On April 2, reciprocal tariffs kick in. Whatever they tax us, we will tax them," he said, adding that he deliberately avoided making the announcement on April 1 to prevent April Fool’s Day jokes.
He also warned that if trading partners used "non-monetary barriers" to restrict US access to their markets, the US would respond in kind.
US Commerce Secretary Criticizes India’s Tariffs
At the India Today Conclave 2025, US Secretary of Commerce Howard Lutnick reiterated that India has some of the highest tariffs globally. He suggested that a broad macro approach—rather than product-specific negotiations—could lead to a faster resolution.
Impact on global trade
Trump’s reciprocal tariff policy follows recent hikes on Canadian, Mexican, and Chinese imports, which have already triggered retaliatory measures from those nations. With India now making tariff concessions, the next phase of negotiations will determine whether this trade dispute escalates further.