India Agrees to Cut Tariffs, Trump Announces

Aakhir Tak – In Shorts

Trump announced India will cut tariffs on American imports.
This follows the US threatening reciprocal tariffs on India.
Indian companies are strategizing to ensure business continuity.
Trump said the US will tax countries with high tariffs on US goods.
US trade officials requested India remove tariffs on almost all goods.

Aakhir Tak – In Depth

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US President Donald Trump said on Friday that India has agreed to cut down tariffs on American imports, days after announcing reciprocal tariffs on its South Asian trade partner from April 2 for “having trade policies that are unfair to Americans.” This decision comes after increased pressure from the US administration regarding trade imbalances.

Several reports suggested that the Indian government was considering tariff reductions on key imports from the US, while companies across multiple sectors were engaging with American partners to ensure business continuity. Companies dealing in auto parts, consumer electronics, jewelry, and apparel are also strategizing on how to mitigate risks. This proactive approach highlights the significance of maintaining stable trade relations.

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The reported deliberations started after Trump reiterated reciprocal tariffs on Indian imports during his address to the US Congress. “India charges us tariffs higher than 100 percent, China’s average tariff on our products is twice what we charge them and South Korea’s average tariff is four times higher. This is happening by friends and foe. The system is not fair to the US; it never was. On April 2, reciprocal tariffs kick in. Whatever they tax us, we will tax them,” Trump said during his joint address to the US Congress, his first since assuming office in January. He also noted that he did not want to make the announcement on April 1 since it is April Fool’s Day.

He further asserted that if the trading partners “use non-monetary tariffs to keep us out of their market, then we will use non-monetary barriers to keep them out of our market.” This aggressive stance underscores the Trump administration’s commitment to leveling the playing field in international trade.

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“We will take in trillions and trillions of dollars and create jobs like we have never seen before,” Trump emphasized, noting that “we’ve been ripped off for decades by every country on earth, and we will not let that happen any longer.”

Days ago, the US asked India to remove tariffs on nearly all goods except agricultural products, according to a report. If accepted, the demand would have meant India giving up its trade protections while getting no concessions in return. This request was met with considerable debate in India, as it could have significant implications for the domestic economy.

Earlier on Friday, US Secretary of Commerce Howard Lutnick, who is overseeing India’s trade deal with the Trump administration spoke about tariffs levied by India. “I would like to point out that India has some of the highest tariffs in the world, which will necessitate a reassessment of the special relationship between India and the US,” Lutnick said at India Today Conclave 2025.

While reiterating that India had one of the world’s highest tariffs, Lutnick shared his idea of how an agreement on tariffs could be reached in a short time. “If the approach were to focus on individual products — motorcycles, bourbon, and so on, it would take forever,” he said.

“However, given the sheer size of both India and the United States, the right strategy is to take a macro approach. That’s why we believe this can be accomplished,” said Lutnick.

Trump’s pledge of reciprocal tariffs was announced after his new 25 percent tariffs on Canadian and Mexican imports took effect, along with a doubling of duties on Chinese goods to 20 percent. As a result, the US’s three largest trading partners also announced retaliatory measures against it. These global trade tensions illustrate the interconnectedness of the world economy.

Aakhir Tak – Key Takeaways to Remember

Trump announced India will cut India Tariffs on American imports.
The Indian government is considering tariff reductions on key US imports.
Trump reiterated reciprocal tariffs on Indian imports.
The US asked India to remove tariffs on almost all goods, excluding agricultural goods.
Lutnick noted that India has some of the highest tariffs globally.