Washington (Rajeev Sharma): President Donald Trump has put India in the crosshairs of his trade war, unveiling reciprocal tariffs set to begin April 2 and dismissing hopes of a deal that might ease New Delhi’s burden. In a Tuesday address to Congress, Trump highlighted India’s steep tariffs—over 100 percent on autos—as evidence of an uneven playing field.
“India’s taxing us at 100 percent, and it’s not right—never has been,” Trump asserted. “Come April 2, we’ll hit them back with the same rates. If they use other barriers to shut us out, we’ll mirror that too.” The announcement undercuts optimism sparked by Prime Minister Narendra Modi’s recent U.S. trip, where India sought tariff relief by preemptively lowering duties on items like bourbon whiskey.
As India’s Commerce Minister Piyush Goyal met with U.S. Trade Representative Jamieson Greer this week to mitigate the fallout, Trump remained unyielding. Greer, a veteran of Trump’s earlier China tariff push, is tasked with executing this latest salvo. Trump also called out the EU, China, Brazil, and India for decades of high tariffs, vowing to level the scales.
According to Moody’s, India—alongside Vietnam and Thailand—faces significant risks from these tariffs due to wide rate disparities with the U.S., especially in food, textiles, and pharmaceuticals. Though India’s domestic market may limit exposure, currency pressures and constrained policy options loom, though robust local demand and economic safeguards could temper the impact, the agency noted.
The tariffs dovetail with Trump’s 2025 trade vision, which questions the WTO’s relevance and rejects special treatment for countries like India, foreshadowing a rocky road ahead for international trade relations.
