US President Donald Trump has indicated that India may significantly reduce its tariffs on American goods ahead of the April 2 deadline for implementing reciprocal tariffs.

In an interview, he expressed optimism that the Indian government would lower these tariffs substantially, but he reiterated that if no changes are made, the US would begin charging India the same tariffs that India imposes on American products.

This statement underscores the ongoing trade tensions between the two nations, with Trump labelling April 2 as "Liberation Day for America" on his social media platform, Truth Social.

Despite Trump's assertions, there remains uncertainty regarding the actual implementation of these reciprocal tariffs. While some officials have suggested that negotiations could delay or alter the application of these tariffs, others within the administration have maintained that the tariffs will take effect as planned unless prior agreements are reached.

India's government is actively engaged in discussions to finalize a bilateral trade agreement with the US, aiming to address tariff disparities and enhance economic cooperation.

India has already taken steps to mitigate potential impacts by reducing tariffs on certain American imports, such as motorcycles and bourbon.

However, Trump's threat of reciprocal tariffs poses significant risks to key Indian exports, including pharmaceuticals and metals, which could face higher costs and reduced competitiveness in the US market.

As both countries navigate this complex trade landscape, the outcome of their negotiations and India's response to Trump's tariff threats will be crucial in shaping future economic relations.

ET News