India has officially denied the claims made by former US President Donald Trump regarding tariff reductions, stating that no such promise was made. Trump had earlier suggested that India agreed to lower tariffs on American goods, but Indian officials have now refuted the statement, calling it inaccurate.

The issue has sparked fresh discussions on trade relations between India and the US, with both sides maintaining different narratives.

What Did Trump Claim?

• Trump stated that India had agreed to reduce tariffs, suggesting a breakthrough in trade negotiations.
• He had previously criticized India’s high import duties on American goods, especially on products like motorcycles, medical devices, and agricultural products.
• His remarks were seen as an attempt to highlight trade wins during his tenure.

India’s Response: No Such Agreement

• Indian officials rejected Trump’s claim, clarifying that no formal agreement was reached regarding tariff cuts.
• The Ministry of External Affairs (MEA) stated that tariff policies are based on national interests and are not subject to unilateral negotiations.
• India emphasized that trade discussions continue, but no commitments have been made on specific tariff reductions.

What Does This Mean for India-US Trade Relations?

1. No Immediate Tariff Changes

• Since India has not made any commitments, existing tariffs will remain unchanged for now.
• Future reductions, if any, will be part of broader trade negotiations.

2. Ongoing Trade Negotiations

• Both countries continue to discuss market access, tariff adjustments, and trade balance issues.
• India remains open to fair trade agreements but insists on mutual benefits.

3. Potential Political Impact

• Trump’s claim could be seen as an attempt to pressure India into concessions.
• India’s response makes it clear that trade policies will not be dictated by external influence.