India, China levies very high: Trump declares reciprocal tariffs from April 2
US President Donald Trump on Tuesday night criticised the high tariffs charged by India, China and other countries, calling the practice “very unfair” and announced the imposition of “reciprocal tariffs” from April 2.
He was addressing a joint session of the US Congress.
This leaves India with less than four weeks to decide and, if needed, adjust the duties it levies on US goods entering India. Otherwise, the Trump administration will impose equal tariffs on Indian goods entering the US.
New Delhi has already set up a multi-ministry committee to study the impact the reciprocal tariffs will have on the India-US trade.
In February, after a bilateral meeting between Trump and Prime Minister Narendra Modi in Washington DC, the two countries had agreed to negotiate the first tranche of a mutually beneficial multi-sector bilateral trade agreement by September-October this year.
Modi and Trump had also announced “Mission 500”, targeting a bilateral trade of $500 billion by 2030.
India studying impact on trade
- The decision leaves India with less than four weeks to decide and, if needed, adjust the duties it levies on US goods
- In case it doesn’t, the Trump admn will impose equal tariffs
- New Delhi has set up a multi-ministry panel to study the impact the reciprocal tariffs will have on India-US trade
China: Ready, if war is what US wants
- In response to US tariffs, the Chinese foreign affairs ministry said, “If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.”
- Spokesperson Lin Jian said, “Bullying does not work on us. Threats are not the right way of dealing with China.”
Meanwhile, in his speech at the joint session of the US Congress, Trump pointed out India’s high tariff rates, stating, “India charges us tariffs — 100 per cent. The system is not fair to the US, it never was.”
“Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those countries,” Trump said, reinforcing his “America first” approach. Under the policy of reciprocal tariffs, the US plans to impose equivalent tariffs on countries that levy high duties on American goods. Trump said, “Whatever they tariff us, we will tariff them. Whatever they tax us, we will tax them. If they use non-monetary barriers to keep us out of their market, we will do the same.”
The new tariffs, which will target a wide range of imports from key trading partners, including Canada, Mexico, China, the European Union and India, are part of Trump’s push to overhaul US trade policies. Trump argued that countries have long imposed higher duties on American products while benefiting from lower US tariffs, creating an uneven playing field.
Trump’s push for reciprocal tariffs is in line with his long-standing belief that global trade rules disadvantage the US. During his first term, his administration considered similar measures but did not fully implement them. The new tariffs will be applied on a country-by-country basis, considering not just tariff rates but also non-tariff barriers like subsidies and regulatory hurdles.
