US to Impose Reciprocal Tariffs on India From April 2 as Prez Trump Decries 'Unfair' Duties

Weeks after Prime Minister Narendra Modi met the US President Donald Trump, India is staring at President Trump's threat of imposing reciprocal tariffs, which has led to fears of a global trade war.

- MPOST BUREAU

India is looking at finding an amicable solution to the challenge under the broader framework of a trade deal with Washington.

In his latest salvo, the US president, while addressing a joint session of the Congress on Tuesday, mentioned India alongside the European Union, China, and Canada for charging higher tariffs on American products.

In line with his "America First" policy, Trump announced reciprocal tariffs from April 2 on numerous trading partners and nations that impose higher levies on imports from the United States.

He said other countries have used tariffs against the US for decades and now, it is "our turn" to start using them against those nations.

"On average, the European Union, China, Brazil, India, Mexico, and Canada—have you heard of them? And countless other nations charge us tremendously higher tariffs than we charge them," Trump said. He added, "It is very unfair. India charges us auto tariffs higher than 100 percent. China's average tariff on our products is twice what we charge them. And South Korea's average tariff is four times higher."

Trump's policy on tariffs has triggered global concerns and stoked fears of a larger trade war. His 25 percent tariffs on imports from Canada and Mexico came into effect on Tuesday.

In addition, the US president has also doubled the 10 per cent tariff he announced on Chinese imports in February. It now stands at 20 per cent.

In February, President Trump said that his administration would “soon” impose reciprocal tariffs on countries such as India and China, reiterating what he had said during Prime Minister Modi’s visit to the US capital last month.

Trump has made it clear to PM Modi that India will not be spared from Washington’s reciprocal tariffs and emphasised that “nobody can argue with me” on tariff structure.