India May Cut Tariffs on US Goods Amid Trump’s Trade Pressure

NEW DELHI, India — India is considering reducing tariffs on select high-end goods imported from the United States, including specialty steel, luxury motorcycles, and electronic items, according to government sources. The move, which could be announced during Saturday’s budget presentation, follows recent criticism from U.S. President Donald Trump, who labeled India, China, and Brazil as “tremendous tariff makers.”

The proposed tariff cuts are not expected to significantly impact India’s domestic industries. Currently, India imposes duties exceeding 100% on 20 U.S.-imported items. The decision comes amid escalating trade tensions, with Trump vowing to prioritize American interests and impose reciprocal tariffs on countries he claims harm the U.S. economy.

“We’re going to put tariffs on outside countries and people that really mean harm to us. China is a tremendous tariff-maker, and India, Brazil, and so many other countries. But we’re not going to let that happen any longer… because we’re going to put America first,” Trump told House Republicans during a recent address.

Trump’s remarks echo his September 2024 campaign rhetoric, where he emphasized reciprocal trade policies. “If anybody charges us 10 cents, $2, 100%, or 250% in duties, we charge them the same thing,” he said. The U.S. president has consistently targeted China with tariffs, while also warning BRICS nations, including India, against abandoning the U.S. dollar as a common currency.

India’s potential tariff reduction aligns with ongoing discussions between Prime Minister Narendra Modi and Trump. The two leaders recently spoke by phone, discussing bilateral trade, security, and Modi’s upcoming visit to the White House in February. The White House described the conversation as productive, highlighting the strategic partnership between the two nations.

“President Donald J. Trump held a productive call with PM Modi. They discussed expanding and deepening cooperation, including security in the Indo-Pacific, the Middle East, and Europe,” a White House statement read.

Trade relations between India and the U.S. reached a record $190 billion in goods and services in 2023, according to India’s External Affairs Ministry. However, concerns persist over Trump’s aggressive tariff policies and their impact on global trade dynamics.

Trump’s approach has been interpreted as part of his “America First” economic strategy, aimed at revitalizing U.S. manufacturing by increasing tariffs on foreign goods. Critics argue that such measures could strain international relations, while supporters view them as necessary to protect American industries.

As India prepares to host Quad representatives later this year, the Modi-Trump dialogue underscores the importance of balancing economic interests with strategic alliances. The outcome of India’s tariff decision could set the tone for future trade negotiations between the two nations.