WASHINGTON DC: The U.S. President Donald Trump has announced that he will soon introduce reciprocal tariffs on countries like India and China. This means that the U.S. will charge the same tariffs on their goods as they charge on American products.
Speaking at a press conference on February 21, Donald Trump said, "If they charge us, we will charge them the same. Whether it's India, China, or any other country, we want fairness." He also mentioned that the U.S. had planned to do this earlier, but the COVID-19 pandemic delayed the process.
Before his recent meeting with Indian Prime Minister Narendra Modi, Trump criticized India’s tariff system. He said, “India has the highest tariffs, and doing business there is very difficult.” He made these remarks while discussing Tesla CEO Elon Musk’s meeting with Modi. Trump suggested that Musk met Modi because he wants to expand business in India but faces challenges due to high tariffs.
Trump also recalled how India’s high import taxes affected Harley-Davidson. He said, India has certain highest trade tariffs in the world. I remember when Harley-Davidson couldn’t sell bikes in India because the taxes were too high. They had to start manufacturing there to avoid the high costs," he said.
India-US Trade Situation
Despite trade challenges, United state remains India's top export market, accounting for 17.7 percent of India's exports in the 2024 financial year. India’s trade surplus with the U.S. has grown significantly from USD7 billion in 2000 to USD45.7 billion in 2024.
Over the years, U.S. tariffs on Indian products have slightly increased, from 2.72 percent in 2018 to 3.83 percent in 2022. However, India’s tariffs on U.S. imports have risen more sharply, from 11.59 percent in 2018 to 15.30 percent in 2022.
Meanwhile, India is working on expanding its exports by exploring new markets and supply routes, including Europe, the Middle East, and the U.S.