US President Donald Trump stated that India has agreed to lower its tariffs significantly, once again fueling fears that America’s high tariffs are a barrier to its exports to India. The statement follows a recent visit to the United States by Union Commerce Minister Piyush Goyal, during which he conducted trade negotiations with his US counterpart Howard Lutnick.
In a speech given from the Oval Office, Donald Trump grumbled about trade deficits, stating, “Our country has been absolutely ripped off by almost every country in the world.” Trump specifically called out India, stating its tariffs were “massive” and “restrictive,” that they hinder U.S. businesses from doing business within the Indian market.
“They have agreed to cut their tariffs long ago now because someone’s finally exposing them for what they’ve done,” Trump continued, comparing the matter to China and the European Union, which he also accused of doing the same.
The reaction came with Indian sources highlighting the point that the country has already made significant reductions in average applied tariffs to its key developed world nations, such as Australia and the UAE, by recently signing bilateral trade agreements. It also has negotiations with the European Union and the United Kingdom in the pipeline, which reflects a general strategy of enhancing trade relations.
India and the US will start negotiations on the first phase of a multi-sector Bilateral Trade Agreement (BTA) by autumn 2025 following a deal between President Trump and Prime Minister Narendra Modi to appoint high-level representatives for the same. The focus will be on greater market access, lowered tariff and non-tariff barriers, and supply chain integration.
During Goyal’s visit to Washington, which took place from March 3 to 6, discussions were held with key US officials, including the Commerce Secretary and the US Trade Representative. Ongoing dialogues regarding tariffs and trade, highlighted during Modi’s prior visit, are part of a continuous negotiation process, with both nations recognizing each other’s interests and sensitivities.
Although preliminary discussions have occurred on a partial trade agreement in Trump’s first term, no concrete outcome was developed. As continuing negotiations remain in their infancy, officials said that it is too soon to release details, pointing out the importance of understanding the context and interests of both parties.
