India imposes “enormously high” tariffs that restrict imports, U.S. President Donald Trump’s chief economic adviser Kevin Hassett stated on Monday. He added that Indian Prime Minister Narendra Modi would have significant trade discussions with Trump in their upcoming meeting.
During an interview with CNBC, Hassett emphasized that Trump advocates for reciprocal tariffs, ensuring that U.S. duties match those imposed by other nations. “If they go down, we’ll go down,” he remarked, indicating that the U.S. would reduce tariffs if other countries lowered theirs.
Hassett pointed out that most U.S. trade partners maintain tariffs significantly higher than those of the United States. He noted that while Canada, Mexico, and Britain have similar tariff structures, many other countries impose much steeper trade barriers.
Earlier on Monday, Reuters reported that Modi was preparing to introduce further tariff reductions ahead of his two-day visit to Washington, beginning Wednesday.
Meanwhile, Trump plans to announce new 25% tariffs on all steel and aluminum imports into the U.S. on Monday. These will be in addition to the existing duties on metals. Reciprocal tariffs are expected to be announced on Tuesday or Wednesday, with implementation set to follow almost immediately.
Trump has previously criticized India’s trade policies, describing the country as a “very big abuser” in global trade. He has also urged India to increase its purchases of American-made security equipment to establish a more balanced trade relationship.
In response, India is evaluating potential tariff reductions across at least a dozen sectors, including electronics, medical equipment, and chemicals. According to three government officials, these reductions aim to facilitate U.S. exports while aligning with New Delhi’s domestic production strategies.
