Trump Hints at Lower Tariffs for India Amid Trade Negotiations

US President Discusses Tariffs and Trade with India

On Monday, President of the United States, Donald Trump, indicated that the tariffs currently imposed on India could be reduced in the future. He asserted that India has significantly cut back on its imports of Russian oil, which has contributed to the high tariff rates.

During a press briefing at the White House, Trump stated, “The tariffs on India are quite elevated due to Russian oil, and they have ceased their purchases of it. The reduction has been considerable... We will be lowering the tariffs at some point.”

Trump also expressed optimism about nearing a “fair deal” with India, reiterating his previous claims that India's oil purchases were financing Russia's military actions in Ukraine.

Earlier, on October 15, Trump mentioned that Indian Prime Minister Narendra Modi had agreed to stop importing Russian oil “soon,” labeling it as a significant decision.

India's Ministry of External Affairs did not confirm or deny Trump's statements but emphasized that the country aims to maintain stable energy prices and secure supply chains.

However, spokesperson Randhir Jaiswal later clarified that there had been no phone conversation between Modi and Trump on that day.

The overall tariff rate for India stands at 50%, following a 25% reciprocal duty imposed on August 7 and an additional 25% punitive tariff introduced on August 27.

In response to these punitive measures, New Delhi expressed disappointment, stating it was “extremely unfortunate” that the US chose to impose extra tariffs on India for actions that other nations are also undertaking in their national interests.

Recently, trade discussions between the two nations have gained traction, with a delegation of Indian officials led by Commerce Secretary Rajesh Agarwal visiting Washington DC in October for negotiations. In September, Union Commerce Minister Piyush Goyal also traveled to New York for similar discussions.

When questioned about the ongoing trade talks, Trump remarked, “We are making a deal with India that is quite different from previous agreements. They may not be fond of me now, but they will appreciate us again.”

He concluded by stating, “We are working towards a fair trade agreement. Previous deals were quite unfair... But we are getting close.”