NEW DELHI: U.S. President Donald Trump announced on Friday that India had agreed to lower tariffs “way down,” taking credit for the move while once again criticizing countries he deems to have high tariff barriers.
“India imposes massive tariffs on us—you can’t even sell anything there, it’s almost restrictive. But now, they have agreed to cut their tariffs way down because someone is finally holding them accountable,” Trump told reporters at the White House.
His remarks come as an Indian delegation, led by Commerce and Industry Minister Piyush Goyal, is in the U.S. negotiating a potential bilateral trade agreement. So far, the Indian government has remained tight-lipped about the ongoing discussions.
U.S. Pushes for a Comprehensive Trade Deal
Trump’s statement followed comments from U.S. Commerce Secretary Howard Lutnick, who urged a “grand” trade agreement that includes agricultural products. He also suggested India reconsider its defense purchases from Russia.
“It’s time to do something big—something that strengthens U.S.-India ties on a broad scale, not just product by product,” Lutnick said at the India Today Conclave.
U.S. Urges India to Open Its Agricultural Sector
Lutnick specifically called on India to open its agricultural sector for trade, arguing that it “just can’t stay closed.” While India has historically restricted foreign access to its farm sector due to domestic sensitivities, the U.S. continues to push for greater market access for American nuts, fruits, and poultry.
“India’s agricultural market must open up—how and to what extent can be negotiated. Maybe through quotas, maybe through limits,” Lutnick suggested, acknowledging that unrestricted liberalization might not be feasible.
He further pressed for a bilateral trade deal, emphasizing that an agreement with the “largest consuming economy in the world” would be mutually beneficial. “Let’s lower India’s tariffs on American products, and in return, the U.S. will offer India an extraordinary opportunity to strengthen our trade relationship,” he said.
U.S. Pressures India on Defense Ties with Russia
Addressing broader India-U.S. relations, Lutnick noted that trade and tariffs are key issues for Trump’s administration. He also highlighted U.S. concerns over India’s defense ties with Russia.
“Governments have many levers to pull in business negotiations. Historically, India has purchased significant military equipment from Russia—we believe that should change,” he stated.
He also pointed to India’s role in BRICS, the economic bloc that includes Brazil, Russia, China, and South Africa. According to Lutnick, China’s recent proposal for a common BRICS currency—viewed by Trump as a move to challenge the dominance of the U.S. dollar—was among the factors straining relations.
“These are the kinds of things that don’t foster the love and affection we deeply feel for India. We want fair trade, and we want to build an incredible and strong relationship,” he added.
U.S. Tariffs on China to Expand?
On China, Lutnick noted that the U.S. had imposed tariffs in response to issues such as opioid production. He suggested that by April 2, the U.S. would consider additional tariffs on a broader range of Chinese goods.
