US President Donald Trump has signalled he is considering imposing a lower tariff rate on "a lot of countries" as he prepares to introduce what he is calling "reciprocal tariffs" on nations worldwide next week.
India could be among the beneficiaries of such exemptions, as it actively seeks relief from the anticipated tariff hikes, aiming to secure a reduction or exemption in exchange for trade concessions.
The US President continued to bill his looming action as a way to increase American wealth, which he suggested has been stolen by foreign countries.
Trump said that imposing the duties would incentivise them to lower their financial barriers, but said his administration may end up charging some countries less than they charge on US exports.
"I may give a lot of countries breaks, but it's reciprocal. But, we might be even nicer than that. You know, we've been very nice to a lot of countries for a long time, but I call it Liberation Day. April 2 is Liberation Day," Trump said, referring to his deadline.
"We may take less than what they're charging because they've charged us so much, I don't think they could take it. In other words, they've charged us so much that I'm embarrassed to charge them what they've charged us, but it'll be substantial, and you'll be hearing about that on April 2," he added.
Trump's rollout of his reciprocal tariffs plan has sent global markets sharply lower amid concerns that it could send the US economy into a recession.
He said Friday that "there will be flexibility" on his reciprocal tariffs plan after he seemed unlikely to allow exemptions, granting markets a much-needed boost.
All three major US stock indexes posted gains following Trump's comments on Monday with the tech-heavy Nasdaq Composite up over two percent in late-day trading.
India seeks US relief, ready to slash counter-tariffs
As President Trump's announcement on reciprocal tariffs creates ripples across global markets, countries worldwide are preparing to navigate the looming economic impact. Among them, India is actively engaging in trade negotiations with the US, aiming to secure relief from the potential backlash of these tariffs.
With the Liberation Day deadline inching close, India is reportedly seeking relief from the US for agreeing to reduce its own tariffs on US imports.
Reuters, quoting government sources, reported on Tuesday that India is open to cutting tariffs on more than half of US imports worth $23 billion in the first phase of a trade deal the two nations are negotiating — the biggest cut in years, aimed at fending off reciprocal tariffs.
The Indian government officials however warned that cutting tariffs on more than half of US imports hinges on securing relief from reciprocal tax. The tariff cut decision was not final, with other options under discussion such as sectoral adjustments of tariffs and product-by-product negotiations rather than a wide cut, said one of the officials.
The South Asian nation wants to mitigate the impact of Trump's reciprocal worldwide tariffs set to take effect from April 2, a threat that has disrupted markets and sent policymakers scrambling, even among Western allies.
In an internal analysis, New Delhi estimated such reciprocal tariffs would hit 87 percent of its total exports to the United States worth $66 billion, two government sources with knowledge of the matter told Reuters.
Under the deal, India is open to reducing tariffs on 55 percent of US goods it imports that are now subject to tariffs ranging from five percent to 30 percent, said both sources, who sought anonymity as they were not authorised to speak to the media.
In this category of goods, India is ready to "substantially" lower tariffs or even scrap some entirely, on imported goods worth more than $23 billion from the United States, one of the sources said.
