Days after US President Donald Trump claimed that India has agreed to cut the tariffs "way down", the Indian government has said "it has not committed to reduce import duties on American products coming into the country". According to a report by the Times of India, the Indian government has informed a Parliamentary panel that it has made no commitments to the US regarding the slashing of tariffs.
The Indian government has also sought time till September to address the issue regarding its import duties on US products, which is being raised by US President Donald Trump repeatedly.
Earlier on Friday, Trump claimed India has agreed to reduce tariffs on American products. "They've agreed, by the way—they want to cut their tariffs way down now because somebody's finally exposing them for what they've done. And the same thing with China, the same thing with a lot of other countries, and the EU has been a terrible abuser of this country," the US President claimed.
Meanwhile, Minister of State for Commerce and Industry Jitin Prasada on Tuesday informed the Lok Sabha that India and the US are planning to negotiate a trade agreement and both countries will focus on increasing market access, reducing import duty and non-tariff barriers and enhancing supply chain integration.
"Both countries plan to negotiate a mutually beneficial, multi-sector Bilateral Trade Agreement. Both countries would focus on increasing market access, reducing tariff and non-tariff barriers, and enhancing supply chain integration," he said, as quoted by PTI.
An AFP report also stated that India's commerce secretary Sunil Barthwal has said that both countries were working towards a mutually beneficial bilateral trade agreement (BTA), focusing on long-term trade cooperation instead of merely seeking immediate tariffs adjustments.
Only weeks into his second term, Trump has upended global trade, targeting friends and foes alike. He has also blamed all trading partners of "unfair" practices, and has announced reciprocal tariffs on many countries, including India, to begin from April 2.
A report by Nirmal Bang Equities, an online share trading and brokerage company, stated that a potential India-US trade deal will iron out the impact of Trump tariffs. "India is not immune to tariffs but will work around it. A potential India-US trade deal may eventually iron out some of the issues around tariffs and market access on both sides," the report said.
The report highlighted that the US has already imposed a 25 per cent tariff on steel and aluminum imports, but these metals make up less than two per cent of India's exports to the US, limiting the direct impact. However, the bigger concern is the possibility of tariffs on other key Indian exports, including electronics (such as smartphones), automobiles, gems and jewellery, textiles, chemicals, and seafood.
In response to the tariff challenges, India is actively engaging with the US to find solutions. Measures have been introduced in the 2025 Union Budget to ease trade tensions. For example, India has reduced tariffs on motorcycles and alcoholic beverages, showing a willingness to make adjustments. Additionally, India has committed to defense purchases from the US and is exploring oil imports as part of its strategy to strengthen trade ties.
(With PTI And AFP Inputs)