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Trump Slaps New Tariffs on China, Canada, Mexico; India Spared in First Round
February 03, 2025
|Millennium Post Delhi
US President Donald Trump has implemented new trade tariffs, marking a significant shift toward protectionist policies.
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NEW DELHI: The measures, effective Tuesday, impose a 25 per cent tariff on Canada and Mexico, and 10 per cent on China—America's top three trade partners who collectively contribute to nearly $1 trillion of its trade deficit.
India, despite previous criticism from Trump regarding its tariff structure, was notably absent from this first executive order issued on February 1. This omission comes ahead of Indian Prime Minister Narendra Modi's scheduled US visit later this month, suggesting potential bilateral trade negotiations.
The Union Budget 2025-26 revealed India's preemptive approach, featuring reduced duties on key US exports. These include motorcycles below 1,600cc, ground installations for satellites, and synthetic flavouring essences. For motorcycles specifically, tariffs were cut from 50 per cent to 40 per cent for engines below 1,600cc, and to 30 per cent for larger engines.
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