Donald Trump's big claim ahead of April 2 reciprocal threat: India to cut tariffs 'very substantially'

US President Donald Trump claimed Monday that India is set to "substantially" lower its tariffs on American products as a reciprocal policy set by his administration takes effect on April 2.

Speaking to reporters in the Oval Office, Trump pointed to recent tariff reductions by the European Union as a precedent, though no official confirmation has come from India’s government.

"If you look at the European Union on cars ... the EU has already dropped their tariffs down to 2.5% ... which was announced two days ago," Trump said. "I heard a little while ago that India is going to be dropping its tariffs very substantially."

The president made a similar assertion two weeks ago in an interview with Breitbart News, where he suggested India would "probably be lowering those tariffs substantially" before the April 2 deadline.

"On April 2, we will be charging them the same tariffs they charge us," Trump added at the time.

India has yet to issue an official statement on the matter.

The US has been India’s top trading partner from 2021 to 2024, with bilateral trade in goods and services hitting $190.08 billion in 2023. India holds a $43.65 billion trade surplus with the US, exporting $83.77 billion in merchandise while importing $40.12 billion.

While India has reduced some duties—cutting tariffs on high-end motorcycles from 50% to 30% and on bourbon whiskey from 150% to 100%—it has resisted agricultural tariff reductions to shield its small farmers.

Trump has dubbed Wednesday “Liberation Day,” promising to roll out a set of tariffs that he claims will reduce US reliance on foreign goods.

Details remain vague, but the president has hinted at "reciprocal" tariffs matching rates imposed by other nations, targeting countries like the EU, South Korea, Brazil, and India.

Last week, he announced a 25% tariff on auto imports, arguing that the US has been disadvantaged by its trade deficit.

Analysts warn that such tariffs could raise prices for US consumers and reduce household incomes. However, Trump dismissed those concerns in a Saturday interview with NBC News, saying higher foreign car prices would boost American-made vehicles.

"I hope they raise their prices, because if they do, people are gonna buy American-made cars," he said. "I couldn’t care less because if the prices on foreign cars go up, they’re going to buy American cars."