In a major development in the bilateral trade discourse between India and the United States, it is being learned that India is yet to make a commitment to the Trump administration on its tariff policy.

The Trumpian Era

Donald Trump, the 47th president of the United States, has been in office for just under 2 months. He was inaugurated on January 20, 2025. However, the number of developments of monumental consequences that have come to pass in these few weeks is inexplicably abstruse.

While attack on the federal government and equity polices has been a hallmark of the Trump administration's internal or domestic policy, Trump's international policies can be encapsulated in just one word, tariffs.

While a lot has come to pass in this topsy-turvy terrain of tariffs, one particular policy that is slated to kick in on April 2 is of some pertinence to India. The US announced that it would levy reciprocal tariffs, i.e., equivalent tariffs from nations, in accordance with the nation's taxes on US exports.

While a lot has come to pass in this topsy-turvy terrain of tariffs, one particular policy that is slated to kick in on April 2 is of some pertinence to India. The US announced that it would levy reciprocal tariffs, i.e., equivalent tariffs from nations, in accordance with the nation's taxes on US exports.

India-US Negotiations

This put India in a tight spot, as the US government reportedly demanded a near nil or near zero tariff on US goods entering India.

According to reports, apart from not making any immediate commitment, India has also asked the US time until September 25 to arrive at a decision.

This comes at a time, when Donald Trump has gone back and forth on the imposition of these tariffs, especially with regards to the biggest trading partners and allies, Canada and Mexico.

While speaking to reporters at the Oval Office, Donald Trump said, "Canada, Mexico and then you just go right down the line. India charges us massive tariffs, massive, you can’t even sell anything into India. It’s almost, it’s almost restrictive. It is restrictive. We do very little business inside."

This comes at a time, when Donald Trump has gone back and forth on the imposition of these tariffs, especially with regards to the biggest trading partners and allies, Canada and Mexico.

Just in the past few weeks, Trump has gone back on a flat 25 per cent tariffs on both nations, twice. As a result of these developments, what Trump decides on April 2 is going to be crucial.