GUWAHATI: The United States is set to impose reciprocal tariffs on countries levying high duties on American goods, starting Tuesday, April 2. This development has arrived after the White House specifically called out India in the past for imposing a 100% tariff on American agricultural products, terming it “unfair” and detrimental to US exporters.
ALSO READ: Key Financial And Tax Changes Effective April 1, 2025
According to reports, White House Press Secretary Karoline Leavitt recently stated that India’s high tariffs make it “virtually impossible” for US agricultural products to enter the Indian market. She pointed out similar trade barriers imposed by other nations, such as a 700% tariff by Japan on American rice and nearly 300% duties by Canada on butter and cheese.
“These countries have been ripping off our nation for far too long,” Leavitt reportedly said, adding that President Donald Trump would introduce “historic changes” to ensure reciprocity in trade. She emphasised that high tariffs have hurt US businesses and led many to financial distress.
Unlike other countries such as China, Canada, and the European Union, which are preparing to retaliate, India is seeking a diplomatic solution. Recent reports indicate that the latter is open to cutting tariffs on more than half of US imports worth $23 billion.
Proposals to reduce tariffs on several American exports have been introduced, including bourbon whiskey, almonds, walnuts, cranberries, pistachios, and lentils. These concessions were reportedly discussed in trade talks held in New Delhi last week between Indian officials and Brendan Lynch, the US Assistant Trade Representative for South and Central Asia.
Additionally, India has scrapped the 6% “Google tax” on online advertisements—a levy that had previously been a point of contention for global tech companies operating without a physical presence in the country.
India and the US have also agreed to pursue a bilateral trade agreement (BTA), as the four-day discussions in New Delhi, which extended beyond their original schedule, focused on market access, tariff reductions, and resolving trade disputes.
Government officials reportedly described the talks as “friendly and cordial,” with shared goals of reaching an agreement by September. Notably, India is the only country actively engaging with the US on a BTA, while others are preparing countermeasures.
President Trump, in response, acknowledged India’s efforts, referring to Prime Minister Narendra Modi as a “very smart man” and a “great friend.”