Trump Anticipates Significant Reduction in Indian Tariffs but Will Implement Reciprocal Measures
Click to start listening
Synopsis
On March 21, US President Donald Trump expressed his expectation for India to significantly lower tariffs while confirming the continuation of his reciprocal tariff plan. He emphasized his positive relationship with India but criticized its high tariffs, especially on luxury goods.
Key Takeaways
- Trump expects India to lower tariffs significantly.
- He plans to implement reciprocal tariffs starting April 2.
- Trump labels India as a “tariff king”.
- The IMEC aims to enhance trade connectivity.
- India is urged to reduce agricultural import tariffs.
New York, March 21 (NationPress) US President Donald Trump has expressed his expectation that India will significantly reduce its tariffs. However, he will proceed with his initiative to impose a reciprocal tariff rate. “I believe they’re going to probably going to be lowering those tariffs substantially, but on April 2, we will be charging them the same tariffs they charge us”, he stated in an interview released on Thursday.
Trump emphasized his strong relationship with India, but pointed out that it ranks among the highest tariff nations globally. He mentioned this during an interview with Breitbart, a conservative news source. “The only issue I have with India is their high tariffs,” he remarked.
When questioned about the India-Middle East-Europe-Economic Corridor (IMEC), he described it as a coalition of “wonderful nations” collaborating to counteract other countries that pose a threat to trade. While he did not specify which countries were targeted, it was clear that China was a likely contender.
The IMEC initiative was presented at the 2023 G20 Summit in New Delhi. Alongside India and the United States, other signatories included Saudi Arabia, the European Union, the United Arab Emirates (UAE), France, Germany, and Italy, all of whom signed a Memorandum of Understanding for the venture.
The project aims to create both sea and land routes that would connect India to Italy via the Middle East, and potentially across the Atlantic to the U.S.
Trump reiterated the U.S. commitment to this project during Prime Minister Narendra Modi's visit to the White House last month, dubbing it the “greatest trade route in all of history”.
He has previously labeled India as a “tariff king” due to its elevated tariffs on motorcycles, luxury cars, and whiskey.
In response to Trump’s remarks, Finance Minister Nirmala Seetharaman revealed plans to reduce tariffs on luxury cars from 125% to 70% and on high-end motorcycles from 50% to 40%.
Commerce Minister Piyush Goyal recently traveled to Washington to discuss these tariff increases with U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick.
The U.S. particularly urges India to lower its tariffs on agricultural imports.
In his Breitbart interview, Trump appeared to caution India regarding its relations with the European Union, reiterating his frequent criticisms of the group. “The ones that wouldn’t be as friendly to us in some cases treat us better than the ones that are supposed to be friendly, like the European Union, which treats us terribly on trade”, he stated.
He continued, “India and everybody would think of them as an ally. I can say the same for others. But this is a group of wonderful nations that is countering other countries that look to hurt us on trade.”
During European Commission President Ursula von der Leyen’s visit to New Delhi last month, the group and India reached an agreement to expedite negotiations for a free trade agreement by the end of this year.
“We have a powerful group of partners in trade,” he told Breitbart. “Again, we can’t let those partners treat us badly, however. We do better in many ways frankly with our foes than we do with our friends.”
Trump had previously questioned the intentions of the European Union, asserting that it was “formed in order to screw the United States”.
