 "Indian Prime Minister Narendra Modi gestures during a joint press conference with US President Donald Trump at the White House in Washington, DC, US, February 13, 2025. File Image/Reuters")
An official from the Trump administration has said that India is planning to lower tariffs following the president’s sweeping orders to impose new trade measures worldwide, forcing the global stock market to crumble.
Addressing the Senate Finance Committee, US President Donald Trump’s Trade Representative Jameson Greer said, “Our average tariff on agricultural goods is 5%, but India’s average tariff is 39%. You understand the trend here.”
He added that India is among the several countries which has expressed willingness to lower levies as part of Trump’s push for “reciprocity” in trade.
“Nearly 50 countries have approached me personally to discuss the President’s new policy and explore how to achieve reciprocity. And they’ve spoken with many members of the administration. Several of these, such as Argentina, Vietnam, India and Israel, have suggested that they will reduce their tariffs and non tariff barriers in line with the President’s policy,” he said.
Greer argued that the large US trade deficit and the decline of manufacturing were not mere coincidences but rather the outcome of “non-reciprocal tariffs, trading barriers and other economic policies pursued by our foreign trading partners.” He characterised these actions as a “national security emergency” that had significantly damaged the American working class.
Impact Shorts
More ShortsHow has India reacted to Trump tariffs?
Trump’s reciprocal tariffs of 26 per cent came into effect on Wednesday as Asian stock markets remain in a volatile condition.
As he announced the sweeping levies last week, Trump said, “India very, very tough. The Prime Minister just left and is a great friend of mine, but you are not treating us right. They charge us 52 per cent and we charge them almost nothing.”
India’s Ministry of Commerce and Industry had been evaluating different scenarios to address the potential consequences. Reports indicate that the ministry engaged in discussions with domestic industries and examined tariff discrepancies and non-tariff barriers impacting Indian exports to the US.
A report by Reuters suggests that New Delhi is ready to offer tariff cuts on over 50 per cent of American goods worth $23 billion.