Key points
- Indian tariffs on US goods “not helping” trade situation: Katherine Leavitt
- Trump had claimed that India has agreed to cut its tariffs “way down”
- No commitments made on tariff reductions to the US: Indian commerce secretary
- US remains India’s largest trading partner
- US has a deficit of US$46 billion with India
ISLAMABAD: With less than a month until US President Donald Trump’s April 2 deadline for imposing reciprocal tariffs on India, the White House on Tuesday criticised New Delhi for its tariffs on American alcohol and agricultural products, according to The Indian Express.
Addressing reporters, Press Secretary Katherine Leavitt said Indian tariffs on US goods were “not helping” the trade situation.
Leavitt pointed to high tariffs across multiple countries, saying: “I have a handy dandy chart here that shows not just Canada but the rate of tariffs across the board. If you look at Canada, American cheese and butter nearly 300 per cent tariff. You look at India, 150 per cent tariff on American alcohol. Do you think that’s helping Kentucky bourbon be exported into India? I don’t think so. 100 per cent tariff on agricultural products from India… Japan, tariffing rice, 700 per cent.”
Indian tariffs
According to The Indian Express, Leavitt held up a chart displaying tariffs imposed by India, Canada, and Japan, with two circles in India’s tri-colour highlighting the tariffs New Delhi imposes.
She added that Trump believes in reciprocity, stating: “It is about time that we have a President who actually looks out for the interests of American businesses and workers.”
Besides India, Leavitt also accused Canada of unfair trade practices, stating: “The President has been responding to Canada ripping off the US and hard-working Americans for decades. If you look at the rates of tariffs that the Canadians have been imposing on American people and our workers here, it is egregious.”
For the past few days, Trump has been criticising India’s high tariffs. On Friday, he claimed that India has agreed to cut its tariffs “way down”, reiterating that the country imposes massive tariffs on the US.
“No commitments”
Meanwhile, Indian Commerce Secretary Sunil Barthwal told a Parliamentary panel on Monday that India has made no commitments on tariff reductions to the US. He clarified that negotiations are ongoing and that no trade agreement has been finalised, assuring that New Delhi’s interests would be safeguarded, according to The Indian Express.
Largest trading partner
The US remains India’s largest trading partner, with bilateral trade reaching a record $118.2 billion last year. In February, Trump and Prime Minister Narendra Modi endorsed the first tranche of a Bilateral Trade Agreement (BTA), aiming for $500 billion in bilateral trade by 2030. Trump has also ordered an investigation into reciprocal tariffs on all US trading partners, with a decision expected by April 1, according to The Indian Express.
Deficit with India
According to a Lowy Institute report, Prime Minister Narendra Modi’s visit to the White House last month does not seem to have brought India the hoped for concessions and support from Donald Trump. The US president has been as hard on India as he has been with the other countries that have a trade surplus with the United States. Trump abhors a trade deficit. While nowhere in the league of that with China, the United States has a significant deficit with India (US$46 billion), making Delhi ready to receive the president’s ire.
