India Denies Commitment to Reducing Tariffs Amid Ongoing Trade Talks with the U.S.
India has refuted U.S. President Donald Trump’s claims that it has agreed to significantly reduce tariffs.
On Monday, Indian Commerce Secretary Sunil Barthwal informed a parliamentary panel that India has made no commitments to the U.S. regarding tariff reductions. He clarified that discussions between India and the U.S. are still ongoing, and no trade agreement has been finalized.
Barthwal cautioned against relying on media reports or statements from the U.S. President, emphasizing that India’s interests will be fully safeguarded in any trade negotiations.
“Tariff Wars Benefit No One and Could Lead to a Recession”
He reiterated India’s support for free trade and open markets, stating that such policies would help expand trade between the two countries. However, he warned that tariff wars benefit no one and could contribute to an economic downturn.
Barthwal further stated that India will not arbitrarily reduce tariffs, especially in key sectors crucial to its domestic economy. Instead, India prefers to negotiate tariff reductions on a bilateral basis rather than through broad multilateral agreements.
Trump Criticizes India’s High Tariffs on U.S. Goods
On Friday night, Trump accused India of imposing excessively high tariffs on U.S. exports, stating, “You can’t sell anything in India. But now they want to reduce their tariffs significantly because we have exposed their unfair trade practices.”
He claimed that past administrations allowed other countries to take advantage of the U.S., but his administration had put an end to such practices. Trump vowed to tighten trade policies further to prevent economic losses for the U.S.
“Reciprocal Tariffs to Take Effect from April 2”
Addressing a joint session of the U.S. Congress on Wednesday, Trump announced that the U.S. will impose “reciprocal tariffs” starting April 2. He explained that any country imposing tariffs on U.S. goods would face the same tariff rate in return.
Trump humorously noted that he had considered implementing the policy on April 1 but decided against it to avoid confusion with “April Fool’s Day.”
He also emphasized that companies choosing to manufacture outside the U.S. would face substantial tariffs, reinforcing his administration’s commitment to protecting American businesses. Trump criticized other nations for imposing high tariffs on U.S. goods while benefiting from lower tariffs in America, calling it an unfair practice that had persisted for decades.
