Washington, D.C. (Rajiv Sharma): Former U.S. President Donald Trump recently announced a fresh set of tariffs on India, stating that the U.S. would impose “discounted reciprocal tariffs” of 26% on Indian imports. While making the announcement, he referred to Prime Minister Narendra Modi as a “great friend” but criticized India’s high tariff rates on American goods.
Trump Calls for Fair Trade Practices
During his speech, Trump pointed out what he sees as imbalances in trade relations between the two countries. Holding up a chart listing various countries’ tariffs, he remarked:
“India is very tough when it comes to trade. The Prime Minister just visited—he’s a great friend of mine. But I told him, ‘You are my friend, but you’re not treating us fairly.’ They impose tariffs of 52% on us, while we’ve charged them almost nothing for years.”
He also referenced his previous trade policies on China, emphasizing that his administration had successfully imposed tariffs that brought in hundreds of billions of dollars and that similar measures were now necessary for India.
Recent Meeting Between Trump and Modi
Trump’s comments follow PM Modi’s visit to Washington, D.C., in February, which took place shortly after Trump’s second term began. During a joint press conference on February 13, Trump highlighted India’s strong protectionist trade policies and stated that negotiations were needed to establish a more balanced economic relationship.
Addressing the U.S.-India Trade Deficit
Trump also expressed concerns over the U.S.’s trade deficit with India, estimated at $100 billion. He noted that he and Modi had agreed to begin discussions aimed at resolving long-standing trade disputes, stating:
“We are working toward signing an agreement that ensures fair trade. We should have addressed these disparities years ago, but now we’re taking action to create a level playing field.”
Justifying the Tariff Hike
Defending the decision to increase tariffs, Trump stated that the U.S. had been overly generous to its trade partners and that the new rates were still “only half of what other countries charge us.”
With these new tariffs in place, the economic relationship between the U.S. and India is expected to undergo significant changes, potentially paving the way for further trade negotiations in the near future.
