US President Donald Trump announced on Tuesday that India is set to "substantially" reduce its tariffs on American goods, alongside other US allies, ahead of the April 2 deadline for reciprocal tariffs.

Trump referred to this date as "Liberation Day," marking the unveiling of his new tariff plan aimed at addressing what he considers unfair trade practices targeting the United States.

Speaking from the Oval Office, Trump expressed his satisfaction with India's decision, stating, "I think I heard that India just a little while ago is going to be dropping its tariffs very substantially, and I said why didn't somebody do this a long time ago".

Trump dismissed concerns that his tariff policies might push US allies closer to China, claiming instead that the tariffs could benefit these countries economically.

He cited the European Union's recent reduction of car tariffs to 2.5% as evidence of success. White House Press Secretary Karoline Leavitt highlighted the restrictive trade policies imposed by several nations, including India's 100% tariffs on American agricultural products, and emphasized Trump's commitment to levelling the playing field for American businesses.

India's move comes amid ongoing bilateral trade negotiations aimed at doubling trade between the two nations to $500 billion by 2030.

India has been preparing revised tariff reduction proposals as part of these talks, which include lowering duties on automobiles and other goods to avoid reciprocal tariffs from the US.

Experts believe these reductions are strategically designed to protect bilateral trade relations, as the US is India's largest trading partner and accounts for nearly 18% of India's exports.

ANI