Budget 2025: India likely to cut duties on select US imports after Trump’s ‘Tariff Abuser’ remark

India may slash customs duties on certain high-end US imports, including specialized steel, premium motorcycles, and electronic goods, in the upcoming Union Budget 2025, according to an NDTV Profit report. Sources familiar with the matter suggest that Finance Minister Nirmala Sitharaman is expected to announce these changes when she presents the budget on February 1. However, Moneycontrol has not independently verified this report.

The move comes in response to US President Donald Trump's repeated criticism of India’s trade policies. During his presidential campaign, Trump labeled India a "very, very big abuser" of import tariffs. More recently, on January 27, he described BRICS nations—including India—as “tremendous tariff makers” and vowed to impose tariffs on countries he believes harm US economic interests. He had also previously threatened a 100 percent tariff on BRICS nations if they attempted to move away from the US dollar in global trade.

India currently imposes duties exceeding 100 percent on nearly 20 imported products from the US. A Moneycontrol analysis found that the average tariff gap between India and the US across over 3,000 traded goods is 11.9 percent—significantly higher than the US tariff gaps with other nations. For example, the US tariff gap is 3.5 percent with China, 8 percent with Vietnam, 7.2 percent with Indonesia, and 6.8 percent with Mexico.

With the Budget 2025 approaching, trade experts will be watching closely for policy shifts, while salaried taxpayers are also eager for potential income tax reforms that could provide financial relief.