Tariff Row: India Denies Tariff Reduction Commitment on US Goods Amid Trump’s Allegations

Ravi Singh

New Delhi Tariff Row: Just a week after US President Donald Trump announced that India has agreed to reduce import duties “way down,” the government has made it clear that nothing on those lines has been finalized. In accordance with a Times of India report, the Indian government has told a Parliamentary panel that no commitment for the reduction in duty on imported US goods had been made by the government.

The Indian government has also requested time up to September to deal with the problem of import tariffs on American goods, which has been a frequent issue brought up by President Trump. The tariffs issue has been a thorn in the flesh of the two countries, with the US repeatedly urging India to reduce its tariffs on American goods.

On Friday last week, Trump mentioned that India had also consented to steep tariff reductions. “They’ve agreed, by the way—they want to lower their tariffs significantly now because somebody’s finally showing them for what they’ve done. And similarly with China, the same as a number of other countries, and the EU has been an absolute abuser of this nation,” Trump remarked.

But India’s Minister of State for Commerce and Industry, Jitin Prasada, informed the Lok Sabha on Tuesday that India and the US are in talks to sign a trade agreement. The talks are intended to increase market access, reduce import tariffs and non-tariff barriers, and deepen supply chain integration between the two countries.

India has traditionally imposed high import tariffs on various foreign items to favor domestic industries. Yet, trade negotiations with the US are likely to concentrate on determining a balanced policy that suits both economies without weakening India’s trade policies.

The clarification from the Indian government comes at a critical juncture, as both nations attempt to deepen their trade ties and settle long-pending economic differences. The upcoming talks will chart the direction of future trade ties between India and the US.