Budget 2025: India to Reduce Duties on Some US Imports After Trump’s ‘Tariff Abuser’ Remark

In Budget 2025, India may reduce customs duties on select US imports, including special steel, luxury motorcycles, and electronics. This move comes after former US President Donald Trump criticized India as a *”tariff abuser.”* Reports suggest Finance Minister Nirmala Sitharaman will announce the changes on February 1. Currently, India imposes high tariffs on several US imports, with an average tariff gap of 11.9%. Experts are closely monitoring the Budget, especially regarding import duties and potential income tax reforms.

The Indian government is considering lowering customs duties on certain high-end imports from the United States, such as special steel, expensive motorcycles, and electronic items. According to reports, Finance Minister Nirmala Sitharaman may announce this decision while presenting the Budget on February 1.

US President Donald Trump recently called India a *”very big tariff abuser”* and labeled BRICS nations as *”tremendous tariff makers.”* On January 27, he stated, *”We’re going to impose tariffs on countries that harm us. China, India, Brazil, and many others are doing this, but we won’t let it happen anymore because we will put America first.”*

India currently imposes duties exceeding 100% on nearly 20 imported items from the US. A recent analysis found that the average tariff gap between India and the US stands at 11.9%, whereas it is 3.5% for China, 8% for Vietnam, 7.2% for Indonesia, and 6.8% for Mexico. The tariff gap refers to the difference between the duties India levies on US imports and those the US imposes on Indian exports.

Market experts are closely watching the upcoming Budget, particularly regarding duty reductions on US imports. Additionally, salaried taxpayers are hoping for income tax reforms to ease their financial burden.

Disclaimer
This information is based on reports and sources familiar with the matter. Official announcements and policy details will be confirmed during the Budget presentation on February 1. Economic policies are subject to change based on government decisions and international trade relations.

source : money control