Trump Hits India with New Reciprocal Tariffs, Effective April 2
Trump imposes reciprocal tariffs on India, effective April 2, to counter high foreign trade barriers. Will India negotiate or take retaliatory measures?
President Donald Trump has announced new reciprocal tariffs on India, set to take effect April 2, in response to what he calls unfair trade practices. The move is part of his broader effort to ensure equal tariff treatment between the U.S. and its trading partners. Speaking before a Joint Session of Congress, Trump singled out India’s high tariffs on American goods, particularly in...
President Donald Trump has announced new reciprocal tariffs on India, set to take effect April 2, in response to what he calls unfair trade practices. The move is part of his broader effort to ensure equal tariff treatment between the U.S. and its trading partners.
Speaking before a Joint Session of Congress, Trump singled out India’s high tariffs on American goods, particularly in the automobile sector, where he claims import duties exceed 100%.
"If you don't make your product in America, however, under the Trump Administration, you will pay a tariff—and in some cases, a rather large one," he declared.
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The President specifically called out India, China, South Korea, Brazil, Mexico, Canada, and the European Union, citing their disproportionately high tariffs on American goods. He highlighted that India imposes auto tariffs exceeding 100%, China's average tariff on U.S. goods is twice as high as America's on Chinese imports, and South Korea's tariffs are four times higher.
"This system is not fair to the United States and never was," Trump asserted, promising that his administration would rectify the imbalance through reciprocal measures.
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Under the new policy, Indian goods entering the U.S. will now face the same tariff rates that India imposes on American products, aligning with Trump's “reciprocal tariffs” agenda.
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India has long imposed high tariffs on a range of imported goods, including cars, motorcycles, agricultural products, and technology, citing the need to protect domestic industries. Trump has repeatedly criticized these policies, previously pressuring India to reduce tariffs on American-made Harley-Davidson motorcycles.
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"Whatever they tax us, we will tax them. If they impose barriers on American companies, we will do the same," Trump said, vowing that the U.S. would match India’s tariff rates and enforce non-monetary trade restrictions if necessary.
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The tariffs will likely impact Indian exports to the U.S., including textiles, pharmaceuticals, and technology products sectors that have historically benefited from favorable trade terms with America.
The tariffs are a continuation of Trump’s “America First” economic policies, which focus on boosting domestic manufacturing and countering trade imbalances. After this announcement, whether India will seek negotiations or take retaliatory measures against the Trump administration’s tariff strategy.
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