Trump Announces Reciprocal Tariffs on India and Other Nations

On March 4, 2025, U.S. President Donald Trump, in his first address to Congress after beginning his second term, announced that the United States will impose reciprocal tariffs on countries that levy high tariffs on American goods. This move, which will take effect from April 2, targets India, China, the European Union, Brazil, Mexico, and Canada. Trump justified the tariffs as a response to what he called “very unfair” trade practices and high tariffs imposed by these nations. The announcement is expected to impact trade relations significantly, particularly between the U.S. and India.

Key Points from Trump’s Address

Reciprocal Tariffs Policy

• The U.S. will impose tariffs equivalent to those levied by other nations on American goods.
• Tariffs will apply to India, China, the EU, Brazil, Mexico, and Canada.
• Stated objective: To create a “level playing field” for American businesses.

India’s High Tariffs Criticized

• Trump pointed out that India imposes auto tariffs exceeding 100%.
• He mentioned tariffs ranging from 30% to 70% on U.S. goods, making it difficult for American companies to sell in India.
• He called India the “tariff king” and a “big abuser” in trade.

Previous Engagements with India

• During PM Modi’s recent U.S. visit, Trump urged reductions in India’s “unfair” tariffs.
• Both leaders agreed to start negotiations to address trade disparities.
• The U.S. trade deficit with India stands at nearly $100 billion.

Tariffs on Other Nations

• A 25% tariff on imports from Canada and Mexico.
• A 10% tariff on Chinese goods.
• Canada, Mexico, and China announced retaliatory tariffs on U.S. imports.

Trump’s Stance on Trade

• Emphasized that America has been “ripped off for decades.”
• Stated that “whatever they tariff us, we will tariff them back.”
• Asserted that the policy will bring in “trillions of dollars” and create jobs.

No Official Response from India Yet

• India’s Commerce Minister Piyush Goyal is in Washington for trade talks.
• The U.S. goods trade deficit with India rose by 5.4% in 2024 to $45.7 billion.
• Total trade between the U.S. and India in 2024 was $129.2 billion.