NEW DELHI: United States President Donald Trump stated on Friday that India has agreed to significantly reduce tariffs on American imports. In his address to a joint session of Congress, Trump criticized the existing trade disparities, stating, "On average, the European Union, China, Brazil, India, Mexico, and Canada... charge us tremendously higher tariffs than we charge them. It's very unfair." 

Specifically on India, Trump said,  "India charges us massive tariffs. Massive. You can’t even sell anything in India… But now they have agreed; they want to cut their tariffs way down because someone is finally exposing them for what they have done."

His statement follows his earlier announcement that the U.S. will impose reciprocal tariffs on India starting April 2, in response to what he described as 'unfair' trade practices. Just days ago, Trump defended his decision to impose tariffs on multiple countries, including Canada, China, Mexico, and India, with the new measures set to take effect next month.  

Trump’s comments come even as India’s Commerce Minister, Piyush Goyal, arrived in Washington for ongoing trade talks with his U.S. counterpart, Howard Lutnick. India responded cautiously to Trump’s threats, emphasizing that both sides are negotiating a multi-sector trade agreement aimed at addressing tariff and non-tariff barriers while enhancing market access.  

Ministry of External Affairs spokesperson Randhir Jaiswal highlighted the potential of a Bilateral Trade Agreement (BTA) to strengthen economic ties between the two nations. However, he remained silent on how India would respond if the U.S. moves forward with its planned tariffs.  

“The two governments are in the process of advancing discussions on a multi-sector Bilateral Trade Agreement. Through the BTA, our objective is to deepen India-U.S. trade in goods and services, increase market access, reduce tariff and non-tariff barriers, and strengthen supply chain integration between the two countries,” Jaiswal said.  

India has already taken steps to enhance market access for U.S. products by reducing tariffs on items such as bourbon whiskey, motorcycles, information and communication technology (ICT) products, and metals. However, the U.S. administration remains firm on addressing what it perceives as unfair trade practices. Sources familiar with the matter say that India is considering reducing tariffs on goods of key interest to the U.S., such as automobiles and agricultural products.

The announcement of reciprocal tariffs has raised concerns about potential impacts on India's exports to the U.S., including sectors like pharmaceuticals, textiles, and IT services. Higher tariffs could make these products more expensive in the U.S., potentially reducing demand and affecting Indian manufacturers and exporters.