Donald Trump Claims India Will Drop Tariffs Substantially Ahead of ‘Liberation Day’

Washington: Just a day before announcing reciprocal tariffs that could impact global trade, US President Donald Trump made a surprising claim that India will substantially reduce tariffs on US imports. However, there has been no official confirmation from India regarding such a move.

Trump’s Bold Statement on India’s Tariffs

During a press briefing at the Oval Office, President Trump was asked about the implications of reciprocal tariffs, which were set to be officially announced on April 2. Responding to concerns about the move pushing America’s allies away, Trump asserted that many countries would lower their tariffs to avoid repercussions.

"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," Trump said. He cited the European Union, which recently reduced car tariffs to 2.5%, as an example.

Regarding India, he claimed, "I think I heard just a short while ago that India will be dropping its tariffs very substantially." However, Trump did not provide specifics or mention any Indian officials confirming this claim.

US Gears Up for ‘Liberation Day’ Amid Trade Tensions

Trump has been vocal about trade imbalances and has repeatedly labeled India as the "tariff king". He has also accused India of being among the biggest “abusers of tariffs”.

The US President has declared April 2 as “Liberation Day”, marking a historic shift in trade policy. According to him, "A lot of countries will drop their tariffs," fearing America's retaliatory action.

Also Read: Liquor, Meat, Processed Food…: Indian Businesses Likely to Face Trump’s Tariff

Meanwhile, White House Press Secretary Karoline Leavitt criticized India’s high tariffs, particularly on agricultural imports from the US. She pointed out:

• 100% tariff on American agricultural products by India.
• 50% tariff on US dairy products by the EU.
• 700% tariff on rice by Japan.
• 300% tariff on butter and cheese by Canada.

"This makes it virtually impossible for American products to enter these markets. It has hurt US exports and led to trade deficits, putting many Americans out of work," she stated.

India’s Response: Trade Negotiations in Progress
Unlike other countries that have threatened retaliation, India has been working towards amicable trade solutions with the US.

In recent years, India has reduced tariffs on specific American products such as:

• Harley-Davidson motorbikes
• American bourbon whiskey
• Select agricultural imports (reportedly under discussion)

A Reuters report suggested that India might have offered tariff reductions on over half of US imports worth $23 billion, but only if the US exempts India from reciprocal tariffs.

India’s Budget 2025: Steps to Ease Trade Barriers

As part of its 2025 Union Budget, India announced key customs duty reductions, including:

• American solar cells and machinery
• Luxury cars
• Removal of the 6% digital advertisement tax, benefiting US tech firms like Google, Meta, and Amazon

Looking Ahead: US-India Mega Trade Deal

With India and the US in active negotiations, both sides aim to finalize a large-scale trade agreement before the autumn deadline.

While Trump’s claim about India’s tariff reduction remains unverified, the coming weeks may determine the fate of US-India trade relations amid global economic shifts.