U.S. President Donald Trump launched a scathing critique of India’s tariff regime, calling it “next to impossible” to sell goods to India due to its “massive” import duties. However, he revealed that India has agreed to significantly reduce its tariffs, attributing the shift to increased scrutiny of its trade practices.
In a nationally televised address from the White House, Trump announced the introduction of reciprocal tariffs on countries imposing high levies on American goods, set to take effect on April 2. “India charges us massive tariffs. Massive. You can’t even sell anything in India,” Trump said. “They have agreed, by the way; they want to cut their tariffs way down now because somebody is finally exposing them for what they have done.”
The new policy marks a significant shift in U.S. trade strategy, with Trump vowing to no longer tolerate what he described as unfair trade practices by other nations. He criticized several countries, including Canada and the European Union, for imposing high tariffs on American goods and pledged to introduce reciprocal measures.
Trump specifically targeted Canada’s 250% tariff on U.S. dairy products, calling it “unfair” and vowing to impose equivalent tariffs unless Canada reduces its levies. “Canada has been ripping us off for years on tariffs for lumber and dairy products. Two hundred and fifty percent. Nobody ever talks about that. That’s not going to happen anymore,” he said.
He also accused the European Union of being a “terrible abuser” of the U.S., claiming the bloc was formed to take advantage of American markets.
Earlier in the week, during a speech to a joint session of Congress, Trump singled out India’s high tariffs on automobile imports, which he claimed exceed 100%. “India charges us auto tariffs higher than 100%. It’s very unfair,” he said, reiterating his commitment to rebalancing global trade relationships.
The introduction of reciprocal tariffs is expected to have far-reaching implications for global trade, forcing countries to reassess their tariff policies. Notably, the U.S. has already imposed 25% tariffs on imports from Canada and Mexico and an additional 10% on Chinese goods.
Amid the tensions, U.S. Commerce Secretary Howard Lutnick expressed optimism about the future of India-U.S. trade relations. Speaking virtually at the India Today Conclave, Lutnick emphasized the need for India to open up its agricultural market while acknowledging the political sensitivities involved.
“The Indian market for agriculture has to open up. It can’t just stay closed. Now, how you do that and the scale by which you do that, maybe you do quotas, maybe you do limits. You can be smarter when you have your most important trading partner on the other side of the table,” Lutnick said.
He highlighted the importance of mutual understanding and cooperation, suggesting that India could adopt smarter strategies, such as quotas or limits, to facilitate trade. Lutnick also expressed confidence in the ongoing negotiations for a bilateral trade agreement, expected to be finalized by the fall of 2025.
During a recent meeting between President Trump and Indian Prime Minister Narendra Modi, the two leaders committed to expanding trade and investment to strengthen their economies and create jobs. They set an ambitious goal, “Mission 500,” aiming to more than double bilateral trade to $500 billion by 2030.
India’s Commerce Minister Piyush Goyal visited the U.S. this week to advance negotiations for a multi-sector Bilateral Trade Agreement (BTA). Both nations have designated senior representatives to work toward a mutually beneficial deal.