'It is about dang time': White House hits out at India's high tariffs as reciprocal duties loom

The White House on Tuesday criticised India's high tariffs on American goods, as US President Donald Trump’s administration moves toward imposing reciprocal trade measures with key trading partners.

At a media briefing, White House Press Secretary Karoline Leavitt highlighted what she called "egregious" tariff rates imposed on US exports.

"If you look at India, a 150% tariff on American alcohol — you think that's helping Kentucky bourbon be exported into India? I don't think so," she said, referring to a chart detailing tariff imbalances.

The chart showed tariffs charged by India, Canada and Japan. On the chart, two circles with the colors of the tri-colour highlighted the tariffs that India imposes.

"President Trump believes in reciprocity, and it is about dang time we have a president who actually looks out for the interests of American businesses and workers."

The Trump administration has set an April 2 deadline for reciprocal tariffs, which would impose duties on goods from countries that levy higher tariffs on American exports.

The move has sparked concern among India’s export industries, including automobiles, agriculture, and chemicals. A Citi Research estimate suggests that such measures could cost India nearly $7 billion annually.

The US has been India’s largest trading partner between 2021 and 2024 and remains one of the few nations with which India maintains a trade surplus.

In 2023, US-India bilateral trade in goods and services totalled $190.08 billion, with India’s merchandise exports to the US reaching $83.77 billion and imports at $40.12 billion, leaving a $43.65 billion trade surplus in India’s favour.

A recent White House fact sheet showed that while the US imposes an average 5% tariff on agricultural products, India’s average tariff stands at 39%. The US also cited India's 100% tariff on American motorcycles, compared to Washington’s 2.4% tariff on Indian motorcycles.

Standard Chartered Bank economists estimate that if the US imposes a uniform 10% tariff hike on all Indian imports, India’s GDP could decline by 50-60 basis points, assuming an 11-12% drop in exports.

India has already moved to lower tariffs on some products, including reducing duties on high-end motorcycles from 50% to 30% and cutting the levy on bourbon whiskey from 150% to 100%. New Delhi has also pledged to reassess other tariff structures while increasing energy imports and defence purchases from the US. However, it has resisted calls to lower agricultural tariffs, citing the need to protect millions of small farmers.

During Prime Minister Narendra Modi’s visit to Washington last month, India and the US launched “Mission 500,” a joint initiative to double bilateral trade to $500 billion by 2030. A key aspect of this effort is a proposed bilateral trade agreement, expected to take shape by the fall of 2025, focusing on reducing tariffs and improving market access.

Minister of State for Commerce and Industry Jitin Prasada told Parliament on Tuesday that both countries aim to enhance trade relations by reducing tariff and non-tariff barriers and integrating supply chains. "India is moving towards Preferential/Free Trade Agreements wherein customs tariffs and non-tariff barriers are reduced or eliminated," he said in a written reply.