Trump Announces Reciprocal Tariffs Ahead Of Meeting With PM Modi

Washington DC: US President Donald Trump announced plans to impose reciprocal tariffs on countries that charge the US with taxes and tariffs. Trump's move to impose reciprocal tariffs comes just ahead of his meeting with Indian Prime Minister Narendra Modi. Trump, while announcing reciprocal tariffs at a press conference on Thursday, explicitly mentioned India, stating that it has more tariffs than nearly any other country.

"Reciprocal tariffs – meaning, whatever countries charge the United States of America, we will charge them – no more, no less," Trump said. He further added, "They charge us with tax and tariffs; it's very simple: we will charge them with exact tax and tariffs."

"On trade, I have decided that for the purpose of fairness, I'll charge reciprocal tariffs - meaning, whatever countries charge the United States of America, we will charge them - no more, no less. They charge us with tax and tariffs, it's very simple we will charge them with exact tax and tariffs," the US President said.

Notably, Trump has been critical of countries including India imposing high tariffs on US goods. In a recent campaign speech, Trump called India a "big abuser" of US trade ties, while praising PM Modi as a "fantastic" leader.

The US has been seeking to reduce India's trade barriers and tariffs, and Trump's announcement may be seen as a way to pressure India to negotiate a more favourable trade deal.

Notably, Indian Prime Minister Narendra Modi is set to meet US President Donald Trump at the White House on Thursday, with talks expected to focus on trade, tariffs, defence cooperation, and India’s role in the Indo-Pacific. PM Modi is anticipated to offer trade concessions, including lower tariffs on US goods and increased imports of American energy and defence equipment.

What Trump Aims With Reciprocal Tariffs

President Trump's plans for reciprocal tariffs will match the duties charged by other nations. His strategy is aimed at targeting trade barriers and surpluses, with a goal to strengthen US economic and national security. These tariffs will not go into effect immediately but could begin within weeks as Trump’s trade team studies bilateral tariffs and trade relationships. The tariffs are designed to counteract non-tariff barriers like regulations, subsidies, and exchange rate policies that hinder US exports.

The White House official mentioned that the administration will focus first on countries with the largest trade surpluses and highest tariff rates, including China, Japan, South Korea, and the European Union. The reciprocal tariffs will not follow a "one-size-fits-all" approach, instead, they will be customised to the specific trade relationship with each country, though a global flat tariff remains a possibility.

India-US Trade Relations

Announcing the tariffs, Trump acknowledged that US prices "could go up" due to tariffs, but expressed confidence that they would ultimately ease.

The reciprocal tariffs will be imposed on countries with which the US has its biggest deficits or "most egregious issues." Countries like South Korea, which have trade deals with Washington, are less at risk from this move.

India exported $87 billion worth of goods to the US in 2024, while the US exported $42 billion worth of goods. The two leaders could reach an agreement that avoids or delays new tariffs on Indian exports to the US.

About Reciprocal Tariffs

White House press secretary Karoline Leavitt echoed Donald Trump’s message, saying, “This is something he believes strongly in, and it’s very simple logic as to why the president wants to impose reciprocal tariffs."

Reciprocal tariffs will be over and above the 10% across-the-board tariff that went into effect last week. Additionally, other tariffs have also been put in place by the US on Chinese goods and stricter 25% tariffs on steel and aluminium have been announced.

Reciprocal tariffs are an important part of Trump's plan to tackle what he calls unfair trade practices. "Very simply, it's if they charge us, we charge them," Trump explained. The tariffs will be tailored to each US trading partner and consider non-tariff factors, including value-added tax (VAT).

Speaking about India, Trump said, "India has more tariffs than nearly any other country." He added, "We will charge them no more, no less. They charge the US tax or tariff, and we will charge them the exact tax and tariff, very simple."