New Delhi, November 11: In a significant development for India-US trade ties, President Donald Trump has hinted at a possible reduction in tariffs on Indian goods, signalling a potential thaw in the months-long trade tensions between the two countries.
While no formal announcement has been made yet, Trump’s latest remarks suggest that a tariff rollback could be on the horizon as part of improving bilateral relations.
Trump’s Indication of a Policy Shift
Speaking to reporters, Trump said the US was “re-evaluating” its tariff stance toward India, noting that the earlier hikes were tied to India’s imports of Russian oil. He acknowledged that India had since scaled back its Russian energy purchases, prompting Washington to consider easing trade restrictions.
“We’ve seen positive changes from India — and when countries act responsibly, we respond positively,” Trump said, hinting that a trade deal may be closer than ever.
Background: Why Tariffs Were Imposed
The Trump administration had earlier imposed steep reciprocal tariffs - first 25 percent, later raised to 50 percent - on several Indian products. The move came amid concerns that India’s energy and defense ties with Moscow were indirectly supporting Russia’s war efforts in Ukraine. These tariffs strained what had otherwise been one of Washington’s most strategically important economic relationships in Asia.
Trade Talks Back on Track?
Formal trade negotiations between the two nations, launched in February 2025, had stalled after the tariff escalation. The talks had already gone through five rounds before Washington doubled the rates in August, effectively freezing progress on a new bilateral trade agreement.
However, Trump’s latest remarks have renewed optimism in both capitals. Officials in New Delhi say a fresh round of talks could resume soon, especially if Washington follows through on its hinted tariff relief.
A Sign of Warming Ties
The possibility of lower tariffs comes as welcome news for Indian exporters and signals a broader shift toward economic normalisation between the two democracies.
While the US has not officially announced a rollback yet, Trump’s comments mark the clearest indication so far of a more conciliatory approach, suggesting that Washington is prepared to rebuild trust with New Delhi after months of strain.
