President Donald Trump delivers remarks in the Oval Office of the White House in Washington, Friday, March 7, 2025.
President Donald Trump delivers remarks in the Oval Office of the White House in Washington, Friday, March 7, 2025.
US President Donald Trump has asserted that India has agreed to significantly reduce its tariffs following his public criticism of New Delhi's "massive tariffs" on American imports.
"...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 said.
This marks the third consecutive day that Trump has commented on India’s tariffs. The remarks come at a time when an Indian delegation led by commerce and industry minister Piyush Goyal is in the US to negotiate the terms of a potential bilateral agreement.
So far, the Indian government has remained tight-lipped about the ongoing talks.
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US pushes India to lower tariffs
US commerce secretary Howard Lutnick said Friday that for the US and India to sign a "grand" bilateral agreement, India must lower its tariffs on American products and increase its defence purchases from the US.
Lutnick criticised India's import tariffs, which are among the highest in the world, urging a reassessment of the "special relationship" between the two countries. He also called on India to shift its defense equipment purchases from Russia to the United States.
His comments come just weeks before Trump's planned reciprocal tariffs on trading partners, including India, start in April.
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It has raised concerns among exporters in industries such as automotive and electronics.
"We would like to focus on a bilateral conversation just between India and the United States — bringing down the tariff levels that India has, that protect certain sectors," Lutnick said, adding that a trade agreement with quotas and limits could be considered for sensitive industries like agriculture, which India has long shielded to protect small farmers.
Lutnick emphasised the need for India to open up its agriculture sector, stating, “The Indian agriculture market has to open up. It can't just stay closed.” He also referred to India’s high tariffs, calling them among the steepest globally, with India's trade-weighted average tariff rate at 12 per cent, compared to the US's 2.2 per cent.
Ahead of a planned meeting between President Trump and Prime Minister Narendra Modi last month, the two leaders agreed to work on resolving tariff disputes and aim to increase bilateral trade to $500 billion by 2030.
Commerce minister Goyal, who has been in the US for nearly a week, met with Lutnick to continue trade discussions.
On defence, Lutnick urged India to end its reliance on Russian military equipment and to prioritize US-made products. He noted that the US plans to increase military sales to India starting in 2025, including F-35 fighter jets.
Lutnick dismissed concerns about tariffs leading to inflation, claiming, "Inflation only comes from running deficits and printing money. Tariffs have not created inflation in India."
With inputs from Reuters