In what could be termed as preventive measures to counter reciprocal tariffs by US President Donald Trump, India is likely to cut tariffs on US imports, a news agency reported.

As per the report, the reciprocal tariffs from the US would hit 87% of India’s total exports, which are worth $66 billion. In the first phase, New Delhi is likely to cut tariffs on imports worth $23 billion.

The sources told the agency that India can reduce tariffs on US goods by 55% as part of the deal.

As per the data from World Trade Organisation, the trade-weighted average tariff for US goods has been 2.2%, while for the same goods, India has 12% tariff. This puts the US into a trade deficit of $45.6 billion, cited the report.

On Saturday, Trump reiterated that he would exert flexibility on tariff policies, but his administration’s new levies on goods coming into the United States would ‘basically’ be ‘reciprocal’. 

During a press availability, Trump made the remarks as his administration plans to roll out country-by-country reciprocal tariffs on April 2, which will be customised based on trading partners’ tariff and non-tariff barriers and other factors, including exchange rates and unfair trade practices.

“The word, flexibility, is an important word. ... There will be flexibility, but basically, it’s reciprocal,” he said, reported another news agency.

Asked if he is considering offering tariff exceptions, the president said, “Once you do that for one, you have to do that for all.”

He repeated his mantra of America being ‘ripped off’ by other countries on multiple fronts, including defence.

“We’ve been ripped off by every country in the world, friend and foe. We’ve been ripped off on trade. We’ve been ripped off on military,” he said.

“We protect people, and they don’t do anything for us. It’s just so unfair for years and years. Now some of that money is going to be coming back to us in the form of tariffs,” he added.

Trump’s reciprocating tariffs may have influenced India’s Union Budget 2025-26, too, which emphasises export promotion. Finance Minister Nirmala Sitharaman highlighted MSMEs contributing 45% of exports as a key growth driver.

To shield businesses from tariff challenges, the government launched an Export Promotion Mission, offering credit, cross-border support, and market access.

(with inputs from syndicated feed)