Trump Pressures India: Cut tariffs or face equal charges from April 2!
US President Donald Trump expects India to lower tariffs on American goods. In an interview with Breitbart News, he said India would likely reduce tariffs significantly. However, starting April 2, the US will impose the same tariffs India charges on American products.
Last week, the Indian government told Parliament that the US has not yet imposed reciprocal tariffs. The clarification followed Trump’s criticism of India’s high tariffs on American goods. He called them unfair and announced plans to implement reciprocal tariffs on countries with similar policies.
On February 13, the US issued a memorandum on reciprocal trade and tariffs. It directed the commerce secretary and the US trade representative to assess the impact of non-reciprocal trade on the US economy. They must evaluate potential harm and propose remedies for each trading partner.
During Prime Minister Narendra Modi’s recent Washington visit, India and the US agreed to boost bilateral trade to USD 500 billion by 2030. They also set a goal to finalize the first phase of a Bilateral Trade Agreement (BTA) by fall 2025.
In 2023, trade between India and the US totaled USD 190.08 billion. This included USD 123.89 billion in goods and USD 66.19 billion in services. India exported USD 83.77 billion worth of goods to the US while importing USD 40.12 billion, creating a trade surplus of USD 43.65 billion. From 2021 to 2024, the US remained India’s largest trading partner and one of the few nations where India enjoys a trade surplus.
