Less than 24 hours ago, President Donald Trump announced his highly anticipated reciprocal tariffs. US President Donald Trump has made a dramatic assertion—India will lower tariffs on US imports substantially.

During a press conference in the Oval Office, President Trump was asked if his new trade policies could alienate America’s allies. In response, he said, “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 two-and-a-half per cent. It was announced a couple of days ago. And I think I heard just a short while ago that India will be dropping its tariffs very substantially.”

US Prepares for ‘Liberation Day’

India and the US have been negotiating a balanced trade deal while even the Trump administration issues threats of tit-for-tat tariffs. President Trump has referred to April 2 as “Liberation Day” for America, a step he says will prompt other countries to reduce their tariffs to prevent retaliatory US trade actions. “A lot of countries will drop their tariffs,” he said, threatening that countries that are involved in what he considers to be unfair trade practices should receive equal treatment from the US.

Trump has repeatedly called India the “tariff king” and accused the nation of being among the largest “abusers of tariffs.” His administration has consistently pointed to what it sees as trade imbalances due to India’s high tariffs on US goods.

White House Highlights Unfair Trade Practices

White House Press Secretary Karoline Leavitt seconded the administration’s reservations regarding India’s trade policy, citing in particular high levels of tariffs imposed on agricultural imports. “India charges 100 percent tariffs on US agricultural imports,” she stated.

She also referred to the same trade practices by other countries, saying, “The EU charges 50 percent tariffs on American dairy products, Japan charges 700 percent tariffs on rice, and Canada charges 300 percent tariffs on butter and cheese. These policies have a devastating effect on US exports, leading to trade deficits and job loss in the United States.”

“This makes it virtually impossible for American products to be imported into these markets, and it puts a lot of Americans out of business and out of work over the past several decades,” she added.

India’s Steps to Manage Trade Relations

While several nations are preparing to retaliate against US reciprocal tariffs, India has taken a different approach, working towards de-escalation and fair trade negotiations.

In response to US grievances, India has already lowered duties on important American items like Harley Davidson bikes and bourbon. As per a Reuters report, India has made further tariff cuts on some farm imports with the objective of improving trade ties.

As per the same report, India has made offers of cuts on more than half of US imports valued at $23 billion, provided Washington is willing to grant India a waiver from retaliatory duties.

India’s Tariff Cuts under the 2025 Budget

India’s 2025 Union Budget has already announced various tariff cuts favoring American enterprises. Some of the major steps include:

Reducing customs duty rates on American solar cells, machines, and high-end automobiles.
Eliminating the 6 percent digital advertising levies from April 1, 2025—a step quite favorable to US technology majors like Meta, Google, and Amazon.

Also, both countries are racing to expedite talks on a huge trade deal before the scheduled autumn deadline.

The Road Ahead for US-India Trade Relations

As tariff retaliation looms between the US and India, both countries have reached a pivotal point in their trade talks. While India seems determined to handle its trade relationship with the US in a harmonious manner, the success of its tariff cuts remains doubtful.

As President Trump gets set to unveil his new trade policies, markets around the world and diplomatic corridors will be keenly observing if India does implement the tariff cuts he says he had heard about.