‘They charge a lot’: Donald Trump threatens reciprocal tariffs against India

President-elect Donald Trump reaffirmed his commitment to imposing reciprocal taxes on India, citing high tariffs on American goods. He emphasized that if India imposes tariffs, the US will respond in kind. While trade tensions are anticipated, India could potentially benefit from trade diversions caused by Trump’s tariff policies targeting other nations.

US president-elect Donald Trump on Wednesday reiterated his intentions to impose reciprocal taxes on India. Trump, who had once described India as “tariff king” accused New Delhi of charging “high tariffs” on American made products.
“Reciprocal. If they tax us, we tax them the same amount. They tax us. We tax them. And they tax us. Almost in all cases, they’re taxing us, and we haven’t been taxing them,” the president-elect said at a news conference at Mar-a-Lago.
“The word reciprocal is important because if somebody charges us – India, we don’t have to talk about our own – if India charges us 100 per cent, do we charge them nothing for the same? You know, they send in a bicycle and we send them a bicycle. They charge us 100 and 200. India charges a lot. Brazil charges a lot. If they want to charge us, that’s fine, but we’re going to charge them the same thing,” he added.
Earlier, the US president-elect had also warned Canada, of 25% tariffs on his first day of administration if they fail to stop flow of drugs and illegal immigrants into US.
Donald Trump, who once described Prime Minister Narendra Modi as “a friend of mine” and visited India during his first term. At a rally before his re-election, Trump remarked, “India is a very big charger. We have a great relationship with India. But they probably charge as much.”

“India is a very big charger. We have a great relationship with India. I did. And especially the leader, Modi. He’s a great leader. Great man. Really is a great man. He’s brought it together. He’s done a great job. But they probably charge as much,” Trump had said.
During his first term, Trump imposed higher tariffs on Indian steel and aluminium, prompting retaliatory Indian duties on American products like almonds and apples. Experts believe that similar trade tensions could arise if Trump targets India again.
Ajay Srivastava from the Global Trade Research Initiative had told TOI that sectors such as automobiles, textiles, and pharmaceuticals could face higher tariffs under Trump’s “reciprocal trade” policy.
However, there may be a silver lining. As Trump focuses primarily on China, India could benefit by filling gaps in sectors like textiles and manufacturing, provided it scales production.
India could benefit from significant export opportunities due to potential trade disruptions caused by US Trump’s proposed tariff policies, according to a Shriram Mutual Fund analysis. Trump’s planned tariffs on major trading partners like China, Mexico, and Canada may redirect trade flows, creating opportunities for India.
The report noted that Trump’s tariff plans, including 10% additional tariffs on China and 25% on Canada and Mexico, could disrupt existing trade patterns, potentially allowing Indian exporters to gain access to these markets.
(With inputs from agency)