Will Donald Trump's 'Liberation Day' Tariff Hit India? What We Know So Far

Last Updated:April 01, 2025, 12:27 IST

Trump has said that “India traditionally is just about the highest tariff country, they charge more tariffs than any other country”. “Whatever they charge us, we are charging them,” he added

US Commerce Secretary Wilbur Ross has recently accused India of blocking US farmers and urged it to open its agricultural market. (PTI Image)

D-day is here! April 2 will mark the dawn of a new world order with the United States turning back on its allies and foes alike and imposing reciprocal tariffs as President Donald Trump’s Make America Great Again (MAGA) campaign takes shape.

Canada and Mexico are likely to face the harshest US tariffs and India, even if a little, will also feel the pinch of Trump’s fury. India and the US have strengthened bilateral ties over the years and the relationship reached new heights with initiatives like QUAD which also includes Japan and Australia.

Despite tailwind in ties, Trump has not shown any mercy and treats India on a par with other countries when it comes to tariffs. Although, in a recent media interaction, he hoped that it will work out fine and hailed Prime Minister Narendra Modi as a “very smart person" and “a dear friend".

Trump has said that “India traditionally is just about the highest tariff country, they charge more tariffs than any other country". “Whatever they charge us, we are charging them," he added.

What Is India’s Take On Trump Tariffs

The Ministry of External Affairs has said that the India-US relationship is very strong and multifaceted, asserting that the economic ties are “very special".

“We have established mechanisms between the US and India to discuss any matter related to trade. Our approach has always been to address issues in a constructive manner which is in keeping with the interests of both countries…We remain in close communication with the US administration," said MEA Spokesperson Randhir Jaiswal while reacting to Trump’s tariff threats.

External Affairs Minister S Jaishankar has earlier said the Indian government has had a “very open conversation" with the administration in the United States about the need for a trade agreement.

“I have every confidence that they (negotiators) will negotiate what is the best possible deal for us. While noting the concerns, I wouldn’t prejudge the outcome. I would wait and see really what happens in terms of our ability to reach an understanding with the United States," he had said.

Speaking at Times Now Summit last week, Union Minister of Commerce and Industry Piyush Goyal said that the trade talks are “progressing well". However, he did not divulge any further details.

“Trade negotiations are ongoing for a bilateral trade agreement ever since we saw the joint press conference by President Donald Trump and Prime Minister Narendra Modi, both announcing the start of negotiations to be concluded by fall 2025 for a mutually balanced bilateral trade agreement. It is progressing well. All industries are very excited about it," he said.

In its Union Budget 2025, India had announced to cut import duty on high-capacity motorcycles that means American brand Harley-Davidson bikes will be available in the country at cheaper prices.

As per a Reuters report, India is open to cutting tariffs on over half of US imports worth $23 billion including imports of US farm products like almonds and cranberries.

How US Reacted On Tariffs For India

Trump has indicated that the US has had “very good" talks with India on tariffs and said it is going to work out well between the two nations.

“Prime Minister Modi was here just recently, and we’ve always been very good friends. India is one of the highest tariffing nations in the world… They’re very smart. He (PM Modi) is a very smart man and a great friend of mine. We had very good talks. I think it’s going to work out very well between India and our country. And I want to say you have a great prime minister," he recently said.

However, Trump has blamed India for charging more tariffs than any other country. “Whatever they charge us, we are charging them," he had said.

Press Secretary Karoline Leavitt said, “Look at India, 150 per cent tariff on American alcohol. Do you think that’s helping Kentucky Bourbon be exported to India? I don’t think so. 100 per cent tariff on agricultural products from India…President Trump believes in reciprocity and it is about time that we have a president who actually looks out for the interests of American businesses and workers…"

US Commerce Secretary Wilbur Ross has recently accused India of blocking US farmers and urged it to open its agricultural market.

News world Will Donald Trump's 'Liberation Day' Tariff Hit India? What We Know So Far