Economy

Trump warns of reciprocal tariffs, calls India a "very high tariff nation."

Published On Fri, 07 Mar 2025
Devang Mishra
3 Views
news-image
Share
thumbnail
US President Donald Trump once again called India a “very high tariff nation” while signing executive orders at the Oval Office on Thursday. He reiterated that the US will impose reciprocal tariffs on countries that levy high duties on American goods, with these measures set to take effect from April 2.
This isn’t the first time Trump has raised concerns over India’s trade policies. Previously, he referred to India as a “tariff king” and, in his address to Congress earlier this week, pointed out what he sees as unfair tariff imbalances with countries like India and China. He specifically noted that India imposes over 100% tariffs on US auto imports, while China’s average tariffs on American goods are double what the US charges in return. Calling these trade practices “unfair,” Trump made it clear that his administration is determined to address them.
Trump’s Argument for Reciprocal Tariffs: Defending his stance on trade, Trump explained that a high tariff nation is one that imposes steep duties on US goods while benefiting from lower tariffs in return. Citing Canada as another example, he highlighted that the country charges the US a 250% tariff on dairy products and also maintains high tariffs on lumber. He argued that the US does not rely on Canadian lumber, emphasizing that it’s time to level the playing field.
Trump further justified the upcoming tariffs by stating that the US has been taken advantage of by multiple countries for years. “We’ve been ripped off by every country in the world,” he said, adding that from April 2, the US will match whatever tariff rate other countries impose on American products. “I’ve been looking forward to that date for a long time,” he remarked, calling it a major step in his trade policy.
Trump and Modi Discuss Trade Disparities: Last month, during his meeting with Indian Prime Minister Narendra Modi at the White House, Trump claimed that the US has a trade deficit of nearly $100 billion with India. He said both leaders agreed to begin negotiations to resolve long-standing trade disputes, stating, “These issues should have been addressed over the last four years, but they weren’t. Our goal is to sign an agreement.” At a joint press conference, Trump acknowledged India’s strong stance on tariffs and expressed hope that discussions would lead to a fairer trade relationship.
Disclaimer: This image is taken from Reuters.