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Trump Promises Reciprocal Tariffs on India and China Amid Ongoing Trade War

Washington DC: On Friday, US President Donald Trump announced plans to soon implement reciprocal tariffs targeting countries like India and China, emphasizing that the United States will impose the same tariffs that these nations apply to American products.

Trump stated, “We will soon implement reciprocal tariffs—they charge us, we charge them. Whatever a country or company, such as India or China, imposes, we aim to be fair; that is the essence of reciprocity.”

Trump Promises Reciprocal Tariffs on India and China Amid Ongoing Trade War

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He further mentioned, “We have never done that before. We were on the verge of doing so until Covid arrived.”

In a statement prior to his meeting with Prime Minister Narendra Modi, Trump had expressed concerns about India’s tariff policies, remarking that “they have the highest tariffs” and noted that “it is difficult to conduct business there.”

Trump’s comments came during a press conference where he was asked about Tesla CEO Elon Musk’s meeting with PM Modi.

“They met. I assume he is interested in doing business in India. However, it’s a challenging environment for business due to the tariffs. They have the highest tariffs. It’s quite a tough place for business operations. I would assume he met with PM Modi possibly because he is leading a company and has been passionate about this for a long time,” Trump stated.

Addressing the topic of reciprocal tariffs, Trump referenced India’s historical trade practices, using Harley-Davidson motorcycles as an example of how American firms have been compelled to establish manufacturing facilities overseas to avoid high import duties.

“Historically, India has been among those with the highest tariffs. While a few smaller countries exceed them, India imposes significant tariffs. I recall that Harley-Davidson faced challenges selling their bikes in India due to the exorbitant taxes and tariffs, which ultimately forced them to set up manufacturing there,” he noted, as reported by US Network Pool via Reuters.

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Trump Criticizes US Trading Partners as ‘Worse than Our Enemies,’ Announces ‘Reciprocal Tariffs’

Trump Criticizes US Trading Partners as ‘Worse than Our Enemies,’ Announces ‘Reciprocal Tariffs’

Just hours before his meeting with Prime Minister Narendra Modi, US President Donald Trump announced his strategy for broad “reciprocal tariffs” that will impact both allies and adversaries, heightening global trade tensions that experts warn could result in domestic inflation.
“To ensure fairness, I’ve decided to impose a reciprocal tariff,” Trump stated in the Oval Office. “It’s fair for everyone. No other nation can argue against it.”

In his Oval Office address, Trump reaffirmed his stance, saying that American allies often act “worse than our enemies” regarding trade issues.

The president also remarked that India imposes “enormous” tariffs, which hindered Harley Davidson’s ability to sell motorcycles in that country. “India is traditionally at the forefront when it comes to tariffs. There are a few smaller nations that charge more, but India’s tariffs are significant. I recall that Harley Davidson was unable to sell motorcycles in India due to excessively high taxes and tariffs, which forced them to establish a factory there to circumvent paying those tariffs. This approach is something others can pursue with us as well. They can set up plants or factories here, which applies to industries like healthcare, automotive, and semiconductor manufacturing,” Trump explained.
The tariffs will be specifically tailored for each trading partner, considering non-tariff factors such as value-added tax (VAT).
This announcement came just before Trump’s planned meeting with PM Modi in Washington. Analysts believe that developing markets like India and Thailand, which impose higher effective tariffs on US goods, could be significantly impacted, while countries with existing trade agreements may experience less disruption.
Peter Navarro, the president’s trade advisor, openly criticized the European Union’s VAT practices, remarking that “Major exporting nations around the globe undermine our markets with severe tariffs and even harsher non-tariff barriers.”
The United States will initially focus on those economies experiencing the largest trade deficits or exhibiting “most egregious issues,” as indicated by a White House representative.
The unnamed official suggested that the implementation of these tariffs could take “a few months, but not much longer than that.”
Trump acknowledged the likelihood of price hikes due to these tariffs but remained hopeful about future market stabilization.
Since taking office, Trump has enacted multiple tariffs targeting key trading partners, contending these actions rectify unfair practices and can drive policy changes.
The president perceives tariffs as means of generating revenue, resolving trade imbalances, and leveraging diplomacy.
The White House representative highlighted unfair trade practices and the absence of reciprocity as contributing factors to America’s ongoing trade deficit.
The memorandum he signed instructs the US Trade Representative, Secretary of Commerce, and other officials to suggest country-specific remedies.