India Denies Commitment to Trump’s Tariff Cut Claim

India has not committed to reducing trade tariffs for the United States, Commerce Secretary Sunil Barthwal informed a Parliamentary panel on Monday. His statement came in response to US President Donald Trump’s recent claim that India had agreed to significantly lower its tariffs.

Prime Minister Narendra Modi with US President Donald Trump in Washington. (File photo: AFP)

Addressing the Parliamentary Committee on External Affairs, Barthwal clarified that discussions between India and the US were still in progress and that no trade agreement had been finalized.

With multiple members of the Parliament panel expressing concerns about Donald Trump's recent statement regarding India's agreement to lower tariffs, Barthwal responded, "One cannot go by the US President's claims and on media reports as the bilateral trade agreement talks between the two nations are still on. India has not committed to anything on trade tariffs to the US".

Moreover, the bureaucrat emphasized that India's interests would be safeguarded during the trade negotiations.

"India was in favour of free trade and wanted liberalisation of trade, which will help increase trade between the two countries," according to PTI sources, Barthwal was quoted as saying.

He stated that although India advocates for trade expansion, a tariff war benefits no one and could potentially "lead to a recession."

"India will not indiscriminately lower tariffs, especially in sectors crucial to its domestic economy. India prefers to negotiate tariff reductions bilaterally rather than multilaterally to ensure national interests are upheld," Barthwal told the committee.

Regarding comparisons with Canada and Mexico, which have actively opposed U.S. tariff policies, Barthwal emphasized that their circumstances differ due to security and border immigration concerns with the U.S. He reiterated that India will only enter a trade agreement that is "mutually beneficial."

What Did Trump Say?

Just weeks into his second term, Trump has disrupted global trade by imposing tariffs on both allies and rivals. Accusing all trading partners of engaging in 'unfair' practices, he has announced broad reciprocal tariffs, set to take effect next month, including those on India.

Last week, Trump reiterated his criticism of India's "massive tariffs," condemning New Delhi's trade policies as overly restrictive.

"You can't sell anything into India, it is almost restrictive. They have agreed, by the way, they want to cut their tariffs way down now because somebody is finally exposing them for what they have done," Trump had said.

Meanwhile, reports indicate that India has requested an extension until September 2025 to address the issue repeatedly highlighted by the American President.

(This Article was originally published by India Today)