'India is going to drop tariffs substantially': Donald Trump ahead of 'Liberation Day' deadline (WATCH)
Donald Trump on Tuesday claimed that "India will soon drop its tariff" substantially along with other US allies, ahead of the approaching reciprocal tariffs deadline on April 2.
US President Donald Trump on Tuesday claimed that "India will soon drop its tariff" substantially along with other US allies, ahead of the approaching reciprocal tariffs deadline on April 2.
Trump, who has consistently maintained that the US has been "ripped off by every country in the world," is promising what he calls a "Liberation Day" for American trade. Trump has announced the imposition of reciprocal tariffs against all countries, with a deadline of April 2. Reciprocal tariffs mean that the US will charge the same duty on goods from a country as that country charges on goods from the US.
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Speaking from the White House Oval Office, Trump dismissed concerns that reciprocal tariffs might push US allies closer to China. He expressed confidence in his strategy, citing the European Union's recent reduction of car tariffs to 2.5% as evidence of success. "I heard that India is going to be dropping its tariffs substantially. A lot of countries are going to drop their tariffs," Trump said.
Breaking: India is going to drop its tariffs says US President Trump pic.twitter.com/NZNydepVbq
— Sidhant Sibal (@sidhant)Reciprocal tariffs may push US allies closer to China
Trump dismissed concerns that imposing reciprocal tariffs could push US allies closer to China. He cited the European Union's recent reduction of car tariffs to 2.5% as evidence of his strategy's success. Trump said, "I have heard that India is going to cut its tariffs substantially. A lot of countries are going to cut their tariffs."
India charges 100% tariff on US agricultural products
Earlier in the day, White House Press Secretary Karoline Leavitt highlighted several examples of what the administration considers unfair trade practices.
Speaking to the reporters, Leavitt noted that India currently imposes 100% tariffs on American agricultural products, while other nations maintain similarly high barriers: the European Union charges 50% on American dairy, Japan levies 700% on American rice, and Canada imposes nearly 300% on American butter and cheese. "50% from the European Union on American dairy, 700% from Japan on American rice, 100% tariff from India on American agricultural products...near 300% tariff from Canada on American butter and cheese. This makes it virtually impossible for American products to be imported to these markets and has put a lot of Americans out of business and work over the past several decades," she said.
White House Press Secretary Karoline Leavitt dismantles the narrative surrounding President Trump’s tariffs and provides evidence of countries, including our allies, exploiting the U.S. with unfair trade practices:
- 50% tariff from the European Union (EU) on American dairy
-… pic.twitter.com/eZ9nDeCI23
She added, "It's time for reciprocity. It's time for the president to historic change and do what's right for the American people".
Impact of America's reciprocal tariffs on India?
From 2021-22 to 2023-24, the US was India's largest trading partner. 18% of the goods exported by India were sent to the US. India imported 6.22% of its imports from the US. The US accounted for 10.73% of India's bilateral trade. The good thing for India in its trade with the US is that it is in a profitable position. India exports more goods than it imports. In 2023-24, India made a profit of more than $35.32 billion (₹2.81 lakh crore) in its trade with the US.
This situation may change if the US imposes reciprocal tariffs on India. Imposing tariffs will increase the price of goods imported from India in the American market, which threatens to reduce their demand. If India reduces tariffs on goods imported from the US, imports will increase.
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