On Tuesday, President Donald Trump asserted that the US is “making major progress” in gaining access to the Indian market, attributing the breakthrough to his administration’s increasing use of tariffs to pressure countries into lowering trade barriers.
The remarks come amid tensions between Washington and New Delhi, as the US imposes a fresh round of steep tariffs on Indian metal exports and broadens its use of “reciprocal duties” to target what it sees as unfair foreign trade practices.
Speaking shortly after announcing a new zero-tariff trade pact with Indonesia, President Trump pointed to the deal as a model for how tariff pressure can yield results.
Under the new agreement, American companies will enjoy zero-tariff access to Indonesian markets, while Indonesian exports to the US will face a 19 per cent tariff.
US President told reporters, “We had no access to any of these countries. Our people couldn’t go in. Now we’re getting access because of what we’re doing with the tariffs,” referring to his administration’s sharp tariff escalation.
US tariffs on Indian metals and broader duties
The US initially reinstated 25 per cent tariffs on Indian steel and 10 per cent on aluminium in March 2025. These were doubled to 50 per cent on June 4, severely impacting Indian exporters.
In parallel, the US also imposed a "reciprocal tariff" of 27 per cent (later revised to 26 per cent) on a wide range of Indian goods in April, citing India’s relatively high tariff barriers, some as high as 70 per cent on specific products.
The move is part of Washington’s broader trade strategy to equalise market access by mirroring partner countries' trade barriers.
India’s retaliation plans and WTO strategy
India, regarding the recent situation of tariff, has taken a “wait and watch” approach for now. A senior Indian government official told PTI that New Delhi will evaluate the full impact of the new duties before finalising its response. The additional US tariffs are scheduled to take effect on August 1.
Back in May 2025, India notified the World Trade Organisation of its intent to impose retaliatory tariffs on selected US goods, targeting USD 1.91 billion worth of trade.
Following the tariff escalation to 50 per cent, India has updated its WTO filing and may double the scope of its retaliatory duties to reflect the increased burden, bringing the value of countermeasures to as much as USD 3.82 billion.
As the US strengthens its tariff approach, India’s forthcoming moves will play a key role in determining the direction of this high-stakes economic relationship.
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