US President Donald Trump said he will impose reciprocal tariffs on India and other countries, which means that it will charge the same duty on India’s products as India imposes on the product exports from the US
US President Donald Trump on Thursday announced that there would not be any concession for tariffs imposed by the country on India. He said that the US will impose reciprocal tariffs on India and other countries, which means that it will charge the same duty on India’s products as India imposes on the product exports from the US.
Prime Minister Narendra Modi is currently on a two-day US visit to hold important discussions with the newly elected President Trump. PM Modi was hosted by US President Trump in the first bilateral talks between the two leaders after Trump assumed the presidency for a second term in January.
This remark from Trump came while responding to a question during the joint press interaction with PM Modi in the White House. He said that India has been the highest tariff nation for the US and it is very difficult to sell in India.
"We are right now a reciprocal nation… We're going to have the same. Whatever India is charging us, we're charging them and I think it is just fair," Trump added.
The US president also revealed that he was planning to implement this model during his first term but could not due to COVID-19. He said that he decided not to implement reciprocal tariffs during COVID-19 on a humane basis. He said he was not in the mood to hit Italy, France or India with reciprocal tariffs at a time when the entire world was suffering.
The Office of the U.S. Trade Representative estimates that the total value of goods traded between the US and India in 2024 was approximately $129.2bn. India's exports to the United States were $87.4bn, 4.5% more than in 2023, while the US exports to India were $41.800mn, 3.4% greater.
When one nation imports more products and services than it can sell outside, there is a trade deficit between the two nations. In this instance, the trade imbalance between the US and India increased by 5.4% to $45.7bn in 2024.
Before the joint interaction, Trump was asked about tariffs in India. He responded that traditionally, India has been among the leading countries in this regard. While a few smaller nations may surpass it, India imposes significant tariffs.
“I remember when Harley Davidson couldn't sell their motorbikes in India because of the fact that in India - the tax was so high, the tariff was so high, and Harley was forced to build... But I think they built a factory in India in order to avoid paying the tariffs. And that's what people can do with us. They can build a factory here, a plant or whatever it may be here and that includes the medical, that includes cars, that includes chips and semiconductors," Trump said.