Trump Announces Major Tariff Cuts by India on ‘Liberation Day’

Dubela, Annrisha Kusari: In a dramatic move, US President Donald Trump on Tuesday said India has agreed to make substantial cuts in its tariffs on US products. The announcement comes a day ahead of the April 2 deadline for retaliatory tariffs that Trump has termed “Liberation Day”. Trump’s declaration has filled the hearts of US-India trade relations optimists with cheer. India’s high tariff walls have been the bone of contention between the two countries for quite some time now, and America has responded with a 100% tariff on American agricultural exports.

The White House has been actively trying to pressure India to cut tariffs, and the announcement from Trump indicates a possible deal looming on the horizon. Although specifics on the level of tariff reductions are not immediately available, the action could potentially have far-reaching impacts on US companies, experts in the field note. “This is a welcome move for US farmers and exporters,” said a US Chamber of Commerce spokesperson. “We commend the Trump administration for its initiative to advance free and fair trade with India.”

The international stakes involved in this deal are high. As the US and India prepare for a better-balanced trade relationship, the ripple effects will be experienced worldwide. The recent lowering of car tariffs to 2.5% by the European Union has been regarded as a welcome gesture, and Trump is optimistic that other countries will do the same. Trump rebuffed concerns that his policies might drive US allies closer to China, saying that the tariffs can actually benefit them in the end. “I think they have a chance of doing better actually with the tariffs,” he said.

With the deadline of April 2 looming near, everyone waits with bated breath to watch how the negotiations between the US and India play out. The one thing is sure – whatever the result will be, its implications will far reach the international trade scenario.