
US President Donald Trump once again on Friday (March 7) criticisedIndia’s trade policies, claiming the country imposes “massive tariffs” on American goods. Speaking in an unscheduled Oval Office address on Friday, Trump stated that India has agreed to reduce these tariffs.
"India levies heavy tariff. It is almost impossible to trade with them. But they agreed to lower down tariffs," he told reporters.
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Earlier the same day, India responded carefully to Trump’s threat of imposing reciprocal tariffs on trading partners from April 2. The Indian government emphasised that both nations are working towards a comprehensive trade agreement to address tariff and non-tariff barriers while improving market access.
India’s external affairs ministry spokesperson, Randhir Jaiswal, acknowledged ongoing discussions between the two countries but did not comment on any specific actions India might take if Trump follows through with his tariff plan.
During Prime Minister Narendra Modi’s visit to the US in February, India and the US announced plans to negotiate a wide-ranging bilateral trade agreement. Indian Commerce Minister Piyush Goyal visited Washington from March 4-6 to discuss the details with his American counterparts. The first phase of the deal is expected to be completed by the autumn.
“The two governments are in the process of advancing discussions on a multi-sector bilateral trade agreement,” Jaiswal said in a media briefing, adding that India’s goal is to enhance trade, improve market access, reduce barriers, and integrate supply chains between the two nations.
Goyal’s meetings in Washington focused on trade and tariff-related issues. “These issues have been discussed, and we will see more in the coming days... but both sides are keen on advancing these discussions further,” Jaiswal stated.
Trump reiterated his stance on tariffs while addressing a joint session of the US Congress on Tuesday. Listing India alongside Brazil, Canada, China, Mexico, and the European Union, he accused these countries of imposing much higher tariffs on US goods than the US charges them.
“It’s very unfair. India charges us auto tariffs higher than 100%. China’s average tariff on our products is twice what we charge them,” Trump said, adding that he intends to introduce reciprocal tariffs from April 2 to correct the trade imbalance.
(With inputs from agencies)