Trump: India to slash tariffs following US pressure on unfair trade practices

US President Donald Trump on March 7 revealed that India has agreed to reduce tariffs on American imports, attributing the move to his administration’s efforts to expose what he described as “unfair trade practices.”

Trump claimed that the reduction came as a result of his actions in “finally exposing them” for their previous trade policies, Caliber.Az reports via Indian media.

This announcement follows his decision to impose reciprocal tariffs on India, which will take effect on April 2.

"India charges us massive tariffs. Massive. You can't even sell anything in India... 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," Trump stated.

This followed reports that the Indian government was contemplating tariff reductions on key imports from the US. In response, companies in various sectors, including auto parts, consumer electronics, jewellery, and apparel, have been working with American partners to ensure continuity in business operations.

These deliberations reportedly began after Trump reiterated his intention to impose reciprocal tariffs on Indian imports during his address to the US Congress.

"India charges us tariffs higher than 100 per cent, China's average tariff on our products is twice what we charge them, and South Korea's average tariff is four times higher. This is happening by friends and foes. The system is not fair to the US; it never was. On April 2, reciprocal tariffs kick in. Whatever they tax us, we will tax them," Trump declared during his first joint address to the US Congress. He also noted that he deliberately chose not to announce the tariffs on April 1, “because it is April Fool's Day.”

Trump also warned that if trading partners “use non-monetary tariffs to keep us out of their market, then we will use non-monetary barriers to keep them out of our market.” He added, “We will take in trillions and trillions of dollars and create jobs like we have never seen before. We've been ripped off for decades by every country on earth, and we will not let that happen any longer.”

Days prior, the US had reportedly urged India to remove tariffs on nearly all goods, with the exception of agricultural products. If India accepted this demand, it would mean abandoning significant trade protections without receiving any concessions in return.

On March 7, US Secretary of Commerce Howard Lutnick, who is overseeing India’s trade deal with the Trump administration, echoed the President’s concerns about India’s high tariffs. "I would like to point out that India has some of the highest tariffs in the world, which will necessitate a reassessment of the special relationship between India and the US," Lutnick said at the India Today Conclave 2025.

Lutnick reiterated the need for a reassessment, adding, "India has one of the highest tariffs in the world," and proposed a more efficient approach for tariff negotiations. He suggested a macro approach instead of focusing on specific products like motorcycles or bourbon, which he claimed would be a prolonged process. "Given the sheer size of both India and the United States, the right strategy is to take a macro approach. That's why we believe this can be accomplished," Lutnick concluded.

Trump’s reciprocal tariffs announcement came on the heels of his new 25 per cent tariffs on Canadian and Mexican imports, as well as a doubling of duties on Chinese goods to 20 per cent. This led to retaliatory measures from the US’s three largest trading partners.

By Tamilla Hasanova