Trump expects India to lower tariffs but keeps April 2 deadline open

US President Donald Trump expects India to lower tariffs on US goods, says same tariffs will be imposed on India from April 2 if no reduction occurs

US President Donald Trump, in an interview with Breitbart News on Wednesday, expressed his belief that India is likely to reduce the tariffs it places on American goods.  

 

"I believe they're going to be lowering those tariffs substantially, but on April 2, we will be charging them the same tariffs they charge us," Trump said. 

President Trump has repeatedly emphasised the April 2 deadline. In a post on Truth Social, a social media platform he owns, he referred to April 2 as "Liberation Day for America." Recently, Indian Prime Minister Narendra Modi also joined Truth Social.  

 

His comments underscore growing trade tensions and hint at the potential introduction of a revised tariff structure between the two nations. Such changes could have far-reaching effects on India's economy, trade balance, and financial markets.  

 

A reduction in tariffs on American imports could heighten competition for domestic industries, including agriculture, automobiles, and electronics. Since tariffs contribute significantly to government revenue, lowering them might also shrink India's trade surplus with the US and impact fiscal stability.  

 

On the other hand, if the US enforces retaliatory tariffs, key Indian exports — such as metals, chemicals, and pharmaceuticals — could be adversely affected.  

US-India reciprocal tariff war

 

The US-India reciprocal tariff war, which escalated in 2025, has significant implications for both nations' economies. In March, President Trump announced plans to implement reciprocal tariffs on Indian goods starting April 2. This move is seen as a response to India's high tariffs on American imports, particularly affecting sectors such as chemicals, metals, and pharmaceuticals.   In February 2025, Trump and Indian Prime Minister Narendra Modi held a crucial meeting where they discussed these trade tensions. Modi praised Trump for being "far more prepared" for his second term and emphasised the importance of their bilateral relationship. Both leaders agreed to negotiate a framework aimed at addressing tariff disparities and enhancing cooperation, with a target of doubling bilateral trade to $500 billion by 2030.