India has dismissed US President Donald Trump’s claim that it agreed to significantly lower tariffs on American products, stating that negotiations on a trade deal with the United States have only just begun. Government sources emphasized that discussions remain ongoing, and any speculation about tariff reductions is premature.
India, US Begin Formal Trade Deal Negotiations
The latest trade discussions follow a meeting between Prime Minister Narendra Modi and President Trump in Washington, D.C., last month. Both nations committed to working toward a mutually beneficial Bilateral Trade Agreement (BTA), with the first phase expected by fall 2025.
Commerce Minister Piyush Goyal recently traveled to the US, holding talks with American officials, including the US Trade Representative. However, despite Trump’s assertion that India has agreed to bring tariffs “way down,” New Delhi sees this as an overstatement.
Foreign Secretary Vikram Misri, addressing the media on Saturday, refused to comment directly on Trump’s claim. “I will not get into that at this point of time because these are ongoing discussions, so it would not be right to get into it,” Misri said.
Trump’s “America First” Tariff Policies Stir Global Concerns
Trump’s stance on trade has long been aggressive, with his administration pushing for “reciprocal tariffs” on countries that impose higher duties on US exports. Earlier this week, he announced a new set of duties taking effect from April 2, targeting several trading partners.
The move has triggered global anxieties over potential trade wars, with several nations considering countermeasures. India has faced criticism from the US over its tariff policies, with Trump repeatedly calling them “massive” and “restrictive.”
- India has progressively lowered tariffs for major economies such as Australia, Switzerland, Norway, and the UAE under various trade agreements.
- New Delhi is currently negotiating similar agreements with the European Union and the United Kingdom.
- US officials argue that India’s tariff reductions should extend to American goods as well.
Despite the friction, government sources in India maintain that trade negotiations must account for both nations’ “interests and sensitivities.”
Why the Trade Talks Remain Contentious
This is not the first time India and the US have attempted to finalize a limited trade agreement. During Trump’s first term, similar negotiations failed to yield results.
Trade experts point to several sticking points:
| Issue | India’s Position | US Position |
|---|---|---|
| Tariffs on US goods | Wants gradual reduction | Demands immediate cuts |
| Agricultural Imports | Seeks protections for domestic farmers | Pushes for greater market access |
| Digital Trade Rules | Prefers local data storage requirements | Wants free cross-border data flow |
| Pharmaceutical Pricing | Defends existing price controls | Pushes for relaxed regulations |
One Indian official, speaking on condition of anonymity, remarked that “since the discussions have just begun, it would be premature to talk about details. Each dimension of this deal reflects the interests of both sides.”
A Long Road Ahead for Indo-US Trade Relations
While both nations are optimistic about strengthening trade ties, the road ahead remains uncertain. India is expected to push for greater access to the US market for its services sector, while Washington will likely press for better terms on American exports.
As negotiations unfold, one thing remains clear—despite Trump’s confident rhetoric, the finer details of any trade deal are far from settled.
