India agrees to slash tariffs amid growing trade tensions with US, claims President Trump

In a significant claim, US President Donald Trump announced on Friday, March 7, that India has agreed to reduce tariffs significantly. Trump’s statement comes amid his outspoken references to India’s trade policies, which seem to have dominated the headlines as the world’s largest economy and the fastest-growing economy make efforts to reboot ties under the new administration.

“India charges us massive tariffs. You can’t even sell anything in India,” Trump said in his remarks. “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.”

#WATCH | Washington, DC: US President Donald Trump says, “…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… pic.twitter.com/XwytKPli48

— ANI (@ANI) March 7, 2025

For instance, Trump has batted for tariff-free access for Tesla and Harley-Davidson motorcycles, threatening reciprocal action. India has already reduced auto tariffs from 110% to 70% and introduced a separate policy for EV imports.

Not just that, the Indian government has recently introduced several trade measures, including a reduction in alcohol import duties, most notably on whiskey. The duty on Scotch whisky, which had been one of the highest in the world, was slashed by 50% earlier this year.

The move has been seen as a sign of India’s willingness to ease trade barriers and foster better relations with its global partners, including the US.

After a meeting between Trump and Indian Prime Minister Narendra Modi last month, the two nations agreed to resolve tariff rows and work on the first segment of a deal by the fall of 2025, aiming for bilateral trade worth $500 billion by 2030.

Indian trade minister Piyush Goyal is on a nearly week-long trip to the U.S. and on Tuesday met U.S. Commerce Secretary Howard Lutnick to pursue trade talks.

In fact, US Commerce Secretary Howard Lutnick called for strengthening India-United States trade ties while also underscoring the need for India to open up its agricultural market. Speaking virtually at the India Today Conclave, Lutnick highlighted the significance of India’s agricultural trade in the context of US President Donald Trump’s plans to impose reciprocal tariffs on trading partners, including India.

In response to Trump’s statement, the Ministry of External Affairs (MEA) remained cautious, reiterating that both countries are in the midst of ongoing talks to reach a mutually beneficial deal.

“The two governments are advancing discussions on a multi-sector Bilateral Trade Agreement (BTA),” said MEA spokesperson Randhir Jaiswal. “Through the BTA, we aim to strengthen India-US trade in goods and services, enhance market access, and reduce both tariff and non-tariff barriers, thus deepening our supply chain integration.”