The buzz is all around the United States tariffs that are set to come into effect on Wednesday, April 2, 2025. Now amid the discussions, US President Donald Trump on Tuesday stated that India is dropping its tariffs on American goods substantially. He added that the tariffs would actually help the countries do better. When asked whether the tariff rates of the United States will push countries to side with China, he replied that it will help the countries instead. However, the US President didn’t explain how that would happen.
Trump reiterated that many countries will drop their tariffs. He said that those countries have been unfairly taxing the United States for years.
“No, I’m not worried about it. I think they have a chance of doing better actually with the tariffs. It can actually help them in a certain way and I think a lot of them will drop their tariffs because they’ve been unfairly tariffing the United States for years,” he said.
Trump further mentioned that the European Union had dropped its tariffs on US made cars to 2.5 per cent. “If you look at the European Union- on cars, the European Union already dropped their tariff down to 2.5 per cent. It was announced a couple of days ago, which is a very small tariff the United States charged,” he said.
What Trump Said About India’s Tariff Cuts
The United States President then talked about India and its much-anticipated response to the tariffs. He mentioned that he heard that India was significantly dropping its tariffs.
“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 said.
How India Is Preparing To Protect Its Exports?
While Trump asserted that India will drop tariffs, Indian authorities or officials have not commented on this claim. Earlier on March 6, Union Finance Minister Nirmala Sitharaman shared that India will be affected by the US tariffs. She had informed about Union Minister Piyush Goyal’s meeting with the government there in America. Finance Minister had stated that the Commerce Ministry is taking up negotiations with the United States. She said, “We will have to see how the Commerce Ministry takes up negotiations with the U.S. to ensure that our interests are well-represented.”
She emphasised that India is engaging with the United States to protect its exports. “Tariff is something the US President has been speaking about. The Commerce Minister has already gone to the US to engage with US officials, including the United States Trade Representative (USTR),” added the Finance Minister.
Liberation Day In US
Notably, Trump will unveil a new tariff plan on April 2, which has been dubbed “Liberation Day.” White House Press Secretary Karoline Leavitt further confirmed that the full cabinet will be present for the event.
“Wednesday, it will be Liberation Day in America, as President Trump has so proudly dubbed it,” Leavitt said. “The President will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades. He’s doing this in the best interest of the American worker,” Leavitt added.
Leavitt indicated that Trump may impose reciprocal tariffs, which would match other countries’ tariff rates on American goods. She highlighted examples of what the administration sees as excessive foreign tariffs, including Canada’s 250% tariff on American dairy products. While such tariffs often result in limited trade rather than high revenue collections, Leavitt argued that they still harm US businesses.
“This makes it virtually impossible for American products to be imported into these markets, and it has put a lot of Americans out of business and out of work over the past several decades,” she said. “So it’s time for reciprocity, and it’s time for a president to take historic change, to do what’s right for the American people, and that’s going to take place on Wednesday.”
